App Store Fees and App Business Models

José Ignacio Heresi () and Yassine Lefouili
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José Ignacio Heresi: Facultad de Economía y Negocios, Universidad Alberto Hurtado, Santiago Chile.

No 24-04, Working Papers from NET Institute

Abstract: We study how an app store's decision about its ad-valorem fee affects the business models chosen by app developers. We derive optimal choices for the app store and their effects on industry profits, consumers, and total welfare. Surprisingly, the platform's optimal ad-valorem fee may be lower than the socially optimal one. Our findings provide insights into recent antitrust disputes and regulatory debates.

Keywords: business model; ad-valorem fee; platform; app store. (search for similar items in EconPapers)
JEL-codes: D21 L21 L40 L50 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2024-09
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic, nep-pay and nep-reg
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