Updates Management in Mobile Applications: Itunes Versus Google Play

28 Pages Posted: 28 May 2020

See all articles by Stefano Comino

Stefano Comino

Università degli Studi di Udine

Fabio M. Manenti

University of Padua - Department of Economics and Management

Franco Mariuzzo

University of East Anglia (UEA) - Centre for Competition Policy

Date Written: Fall 2019

Abstract

This paper focuses on a specific strategy that developers of mobile applications may use to stimulate demand: The release of updates. We develop a theoretical analysis that shows that developers have incentives to release updates when experiencing a drop in performance. The predictions of the model are then tested using an unbalanced panel of top 1,000 apps in iTunes and Google Play for five European countries. We estimate that while in iTunes the release of an update stimulates a 26% increase in download growth, in Google Play updates play a less significant role. This difference is partly due to systematic differences in apps and in developers operating in the two stores (“selection effect”), and partly to a lack of quality control on apps and updates in Google Play (“quality check effect”). These findings highlight the crucial importance of an appropriate management of updates as well as the relevance of institutional characteristics of the app stores.

Keywords: buzz, downloads, Google Play, iTunes, multi‐homing, mobile applications, quality check, updates

Suggested Citation

Comino, Stefano and Manenti, Fabio M. and Mariuzzo, Franco, Updates Management in Mobile Applications: Itunes Versus Google Play (Fall 2019). Journal of Economics & Management Strategy, Vol. 28, Issue 3, pp. 392-419, 2019, Available at SSRN: https://ssrn.com/abstract=3607393 or http://dx.doi.org/10.1111/jems.12288

Stefano Comino (Contact Author)

Università degli Studi di Udine ( email )

Via Tarcisio Petracco, Palazzo antonini, 8
Udine, 33100
Italy

Fabio M. Manenti

University of Padua - Department of Economics and Management ( email )

via Del Santo 33
Padova, 35123
Italy

Franco Mariuzzo

University of East Anglia (UEA) - Centre for Competition Policy ( email )

UEA
Norwich Research Park
Norwich, Norfolk NR47TJ
United Kingdom

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