To Root or Not to Root? The Economics of Jailbreak

摘要: We construct a structural model that allows us to jointly estimate the demand for smartphones and paid apps using Bayesian approach. Our data comes from more than 500 college students in Hong Kong Shanghai. find moral cost rather monetary of jailbreaking determines its prevalence. Users mainly jailbreak use free, reason important among Android users iPhone users. Paid contribute lion's share profits (between 53% 71%) both iPhone. Strictly prohibiting would decrease aggregate market cell phone market. Apple, however, sell even iPhones at expense smartphones.