Working Papers

Spillover Effects and Freemium Strategy in Mobile App Market

Yiting Deng, Anja Lambrecht, and Yongdong Liu

Jun 3, 2018

Does freemium pricing boost – or cannibalize – the premium-priced version of a digital offering? This study shows that freemium “sampling” increases sales of game apps, if firms ensure that features and benefits are sufficiently high to induce upgrades.

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