| Abstract [eng] |
58 pages, 17 tables, 89 references The main purpose of this master’s thesis is to investigate the economic dynamics of the mobile application market, focusing on how information asymmetry between the developers and consumers influences the selection of pricing strategies and how these strategies subsequently impact market stability. The study aims to determine whether monetization model choices serve as strategic signals to reduce the trust gap in an economy characterized by “experience goods”. This work consists of several main parts: the analysis of the theoretical literature, the description of the research methodology, the empirical analysis of the iOS and Android ecosystems, strategic recommendations, and the final conclusions. The literature analysis reviews the development of information asymmetry theories, specifically Akerlof’s “Market for Lemons” (1970) and Spence’s signalling theory (1973), adapting these frameworks to the mobile application market. In this context, mobile apps are viewed as experience goods with non-observable quality prior to download. It posits that the selection of a monetization strategy is a necessary response to adverse selection, functioning as a critical mechanism to reduce the information gap between developers and users in a crowded app ecosystem. To achieve the research objective, the author employed a dual-methodological quantitative approach using large-scale datasets from the Apple App Store (N=94,900) and Google Play Store (N=47,096). Multinomial Logit (MNL) regression was used to analyze how developer signals determine the probability of choosing specific pricing strategies. Additionally, Ordinary Least Squares (OLS) regression was utilized to measure the impact of these strategies on rating counts, which served as a proxy for revenue stability The performed research revealed that pricing is a strategic mechanism used to mitigate information asymmetry. The results indicate that developers facing high asymmetry and weak quality signals are structurally driven to select Ad-Supported or Truly Free models to lower entry barriers and resolve the adverse selection problem. Conversely, the Hybrid model emerged as the equilibrium for developers with strong signalling capabilities. Furthermore, the study uncovered a significant divergence between platforms regarding market stability. On iOS, low-friction models (Hybrid and Ad-Supported) resulted in higher stability, while on Android, the Paid monetization model outperformed others. This suggests that an upfront price tag functions as a necessary quality screening mechanism in that specific ecosystem. In the conclusion, the author emphasizes that managing information asymmetry effectively requires aligning the monetization strategy not only with the product’s attributes but also with the unique economic psychology of the mobile application platform. The findings offer practical guidelines for new market entrants, specifically on how to use pricing strategy as a credible signal of trust to mitigate market uncertainty and ensure long-term survival. |
