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American Economic Review Vol. 104 No. 5 2014

Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem

Pai-Ling Yin1; Jason P. Davis2; Yulia Muzyrya3

1 Stanford University, 366 Galvez St., Stanford, CA 94305 (e-mail: ) · 2 INSEAD, 1 Ayer Rajah Ave, Singapore, 138676 (e-mail: ) · 3 University of Michigan, 701 Tappan St., R0440-40, Ann Arbor, MI 48109 (e-mail: )

Abstract

The mobile applications (apps) industry has exhibited rapid entry and growth in the midst of a recession. Using unique data from the iPhone application ecosystem, we examine how the development of 'killer apps' (apps appearing in the top grossing rank) varies by market and app characteristics. We find that previous app experience and no updating increase the likelihood of becoming a killer game app, while more updates increase the likelihood of becoming a non-game killer app. Development opportunities, level of competition, and demand preferences are possible drivers of the opposing innovation process results in game and non-game markets.

DOI
10.1257/aer.104.5.255
Volume
104
Issue
5
Pages
255-259
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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