Wednesday, May 29, 2024

Three Things about Mobile App Commissions

 

Three Things about Mobile App Commissions
Joshua S. Gans #32339

Abstract:

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.

https://lawprofessors.typepad.com/antitrustprof_blog/2024/05/three-things-about-mobile-app-commissions.html

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