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Updates Management in Mobile Applications. iTunes vs Google Play

Author

Listed:
  • Stefano Comino

    (Dipartimento di Scienze Economiche e Statistiche, Universita di Udine, Udine (Italy))

  • Fabio M. Manenti

    (Dipartimento di Scienze Economiche ed Aziendali "M. Fanno" Universita di Padova, Padova (Italy))

  • Franco Mariuzzo

    (Centre for Competition Policy and School of Economics, University of East Anglia)

Abstract

This paper focuses on a specific strategy that developers of mobile applications may use to stimulate demand: the release of updates. We start with a stylised theoretical analysis to describe the developer's decision to release an update. Its predictions are then tested by using an unbalanced panel with the top 1,000 apps in iTunes and Google Play for five European countries. We show that while in iTunes updates increase the rate of growth of downloads, in Google Play their effect is not significant. We argue that the lack of quality control by Google Play can lead to an excess of updating. We also find that the past performance of the app influences the decision to release an update, but only in iTunes. This finding is in line with our theoretical analysis and can again be interpreted on the basis of the different way of governing the release of updates in the two stores.

Suggested Citation

  • Stefano Comino & Fabio M. Manenti & Franco Mariuzzo, 2015. "Updates Management in Mobile Applications. iTunes vs Google Play," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2015-04v3, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaccp:2015_04v3
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    References listed on IDEAS

    as
    1. Adam B. Jaffe & Benjamin F. Jones, 2015. "The Changing Frontier: Rethinking Science and Innovation Policy," NBER Books, National Bureau of Economic Research, Inc, number jaff13-1.
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    3. Pai-Ling Yin & Jason P. Davis & Yulia Muzyrya, 2014. "Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem," American Economic Review, American Economic Association, vol. 104(5), pages 255-259, May.
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    5. Pai-Ling Yin & Jason P. Davis & Yulia Muzyrua, 2014. "Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem," Discussion Papers 13-028, Stanford Institute for Economic Policy Research.
    6. Octavian Carare, 2012. "The Impact Of Bestseller Rank On Demand: Evidence From The App Market," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 717-742, August.
    7. Jaffe, Adam B. & Jones, Benjamin F. (ed.), 2015. "The Changing Frontier," National Bureau of Economic Research Books, University of Chicago Press, number 9780226286723, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Thanh Doan & Fabio Maria Manenti & Franco Mariuzzo, 2022. "Apple iOS is a closed platform; Google Android is open. In this paper, we combine tablet-level data with data on the quality of the top 1000 mobile applications from these platforms and estimate a str," "Marco Fanno" Working Papers 0266, Dipartimento di Scienze Economiche "Marco Fanno".
    2. Dominik Gutt & Jürgen Neumann & Wael Jabr & Dennis Kundisch, 2020. "The Fate of the App: Economic Implications of Updating under Reputation Resetting," Working Papers Dissertations 76, Paderborn University, Faculty of Business Administration and Economics.

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    More about this item

    Keywords

    mobile applications; updates; downloads; iTunes; Google Play; quality check; buzz; multihoming.;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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