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Why We Agonize Over Buying $1 Apps

theodp writes "When it comes to explaining decision making and behavioral economics, Dan Ariely is the man. In his latest blog post, Ariely tackles the irrationality of app buying, explaining why the thought of paying even $1 for an app turns into an agonizing decision for those perfectly willing to spend $4 on coffee, or $500 on devices that they arguably don't really need. Had Apple created a really low minimum price for apps — say $0.15 — instead of offering free apps on day one, Ariely suggests, we would be anchored to the idea that apps should cost something. 'Then paying more (maybe even $2) for an app would be a simpler step,' he concludes, 'maybe one that we could take as easily as paying $4 for a latte.'"

4 of 523 comments (clear)

  1. Re:No recourse for bad apps by vlm · · Score: 4, Informative

    Perhaps it's because there is no recourse for me as a consumer if the app just doesn't work. At least with that $4 coffee I can send it back if it's bad, can't do that with an app.

    On an iphone. In the android market you simply request a refund. Never had to try it, but supposedly it is possible.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  2. Re:SHOULD "Apps" Cost Something? by samkass · · Score: 4, Informative

    As a long-time Linux user, one of the best points is that everything comes without strings attached. I would say "the idea that apps should cost something" is questionable at best, but leave it to Apple and their users to advocate it.

    Not to rain on your troll, but I think the whole point of the article is that Apple and their users AREN'T advocating it.

    --
    E pluribus unum
  3. Re:No recourse for bad apps by Tharsman · · Score: 4, Informative

    In the Android Market you get 15 minutes to requst a refund.
    In the iOS App Store, you can request a refund by reporting a problem, and writtng to Apple that you want a refund and the reasons for the refund. It's not as quick and automated, nor obvious, as the Android Market, but they give you up to 90 days to do this (or maybe 30 days... not 100% sure now.).

  4. Re:SHOULD "Apps" Cost Something? by Swampash · · Score: 5, Informative

    The money breakdown on a hypothetical $1 app purchase is:

    Developer: 70c
    Credit-card company: 16c
    Apple: 13c
    Storage/network costs: 1c

    http://www.businessinsider.com/chart-of-the-day-cost-of-an-app-2011-7