The Hidden Costs of Fairness in Platform Markets: The Dynamics of Lowering Developer Royalty Rates
Cutting platform royalty rates to 15% for small developers raised low-quality supply and information congestion, imposing hidden costs.
Summary
Using Apple's and Google's announcements as quasi-random shocks, a difference-in-differences analysis examines developer effort and quality.
Editor's opinion
Cutting platform royalty rates to 15% for small developers raised low-quality supply and information congestion, imposing hidden costs.
Key concepts
platform royalty rates · complementor incentives · information congestion · app stores