Three Things about Mobile App Commissions
Joshua S. Gans · National Bureau of Economic Research · 2024
Mobile app commissions paid by app developers to a monopolist device maker/app store operator are examined.Three results are demonstrated.First, unregulated app commissions are set at a level that maximises consumer surplus.Second, eliminating app commissions will lead to higher device prices.Third, requiring a menu of options for consumers as to how device makers receive subsidies from app developers constrains app commissions in a way that provides a more equal balance between consumer versus app developer interests.