The whole problem comes from Apple not allowing trial apps. I agree with your analysis, but this one line seems flawed. The customer looks at app purchases li

The whole problem comes from Apple not allowing trial apps. I agree with your analysis, but this one line seems flawed. The customer looks at app purchases like a game-theory person might look at the prisoner's dilemma mixed with 3 card monty. When faced with this type of "brain damage" most potential consumers, shut down. That is, the market fails. Apple is trying to protect the consumer, so that people don't just walk away. The search, selection, and evaluation costs of something that is modest in value by order of magnitude (say 5x$1.00=$5 or 30 minutes at min wage) are so un-economic they are not worth it. The problem with trials is time-wasting. Apple is worried about the funnel. Ie, that to trial for 10 will people who download 100 aps and spend ~50 hours in seach costs. and 9/10 apps will be worthless, a wast of 45 hours. No consumer is willing to pay 45 hours of time (~$450 @10/hour) for a $1 dollar app x 10. Even at 10x this is worth $100. It is still an oder of magnitude off. $1000 value would be a 2x return on investment. Unless your time is worth $20/hr, and then it is still a waste/neutral at best.