In specific, I construct various analytical models in order to capture different conditions faced by app developers. In the dissertation I study app developers’ product offering decisions when facing the setting of multiple platforms, in-app purchase (IAP), and in-app advertisement (IADV). Mobile app developers usually face challenges in product offering decisions. Non-consumable purchases are often premium features.Įxample: Additional filters in a photo app.In the recent years, mobile applications (apps) have been immensely changing the way of communication, socialization, work, and recreation through mobile devices. Once a user buys a non-consumable purchase, it’s permanently available to them. After using all of a consumable purchase, the user must purchase another consumable IAP again to enjoy the same benefits. Once bought, consumable purchases become depleted as the user uses them. If users want to maintain access, they will have to purchase a new subscription once the current subscription ends.Įxample: A one-time 6-month subscription to an online magazine. This in-app purchase model provides services or content for only a limited period. In contrast, a nonrenewing subscription is not renewed automatically. Users are automatically charged every pay period until they cancel the subscription.Įxample: An automated monthly subscription to a music streaming platform. In this model, users are charged on a recurring basis for access to content, services, or additional features within an app. App publishers often use more than one type of IAP within an app to generate revenue.

There are four types of in-app purchases.

Free app builder with iap