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One of the issues with the app store is the "power of free". A number of studies in psychology and behavioural economics have shown that people over-value free
by noelwelsh 13y ago
One of the issues with the app store is the "power of free". A number of studies in psychology and behavioural economics have shown that people over-value free stuff. You can read an example here: http://danariely.com/2012/02/05/audience-with-a-dragon-tattoo/ http://danariely.com/2012/02/05/audience-with-a-dragon-tatto...
Once you allow free apps they become too attractive -- the simplest way to dominate a category full of paid apps is to offer your app for free. Then we see the race to the bottom that currently afflicts the app market. If there was a minimum app cost, say 99c, free-to-play would not be the issue it is today.
BTW, I originally heard this point made by Dan Ariely (linked above.)