Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82550
Authors: 
Engström, Per
Forsell, Eskil
Year of Publication: 
2013
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2013:6
Abstract: 
Knowledge of how consumers react to different quality signals is fundamental for understanding how markets work. We study the online market- place for Android apps where we compare the causal effects on demand from two quality related signals; other consumers' stated and revealed preferences toward an app. Our main result is that consumers are much more responsive to other consumers' revealed preferences, compared to others' stated preferences. A 10 percentile increase in displayed average rating only increases downloads by about 3 percent, while a 10 percentile increase in displayed number of downloads increases downloads by about 20 percent.
Subjects: 
peer effects
observational learning
stated preferences
revealed preferences
eWOM
Google play
Android apps
regression discontinuity design
instrumental variable analysis
JEL: 
C21
C26
D83
M31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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