Content on the Go: The Economics of the Market for Mobile Apps
From The Theme
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What if there were a better way to price apps than pricing based on either raising revenue or raising visibility?
WHAT WE SET OUT TO DO
We studied app pricing decisions in a stylized model to ascertain the relationship between pricing decisions and market visibility. We took a combined data-driven and structural analysis approach and focused particularly on the role of rankings and recommendations in driving demand.
WHAT WE FOUND
We found that an optimal price cycle alternates between a high price to boost revenue and a low price to enhance visibility. We also demonstrated that this pricing policy is used in practice.
mediaX Research Project Update, Fall 2013
mediaX Research Theme Update, Spring 2013
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PEOPLE BEHIND THE PROJECT
Ramesh Johari is an Associate Professor of Management Science and Engineering and, by courtesy, of Computer Science and of Electrical Engineering at Stanford University. Johari is interested in the design and management of large-scale complex networks, such as the Internet. Using tools from operations research, engineering, and economics, he has developed models to analyze efficient market mechanisms for resource allocation in networks.
Bar Ifrach is a Data Science Manager at Airbnb. He leads a team of data scientists focused on search, pricing, and marketplace health, where he brings to use theory and practice that he acquired in my academic studies and postdoctorate. He enjoys working closely with the product team and takes part in the continuous efforts to grow the marketplace and make the Airbnb experience seamless.