Price promotions increase sales, at least in the short term, but the effect of price promotions on consumers' product evaluations is not well understood. We focus on the market for mobile apps, a category where price variation, including discounting to a zero price is common. We ask how price...

"Freemium” whereby a basic service level is provided free of charge but consumers are charged for more advanced features has become a popular business model for firms selling digital goods. However, it is not clear whether the launch of a free version helps or hurts the sale of an existing...