The App Store Effect

Paul Kafasis (Rogue Amoeba) writes about The App Store Effect on iPhone software pricing.

If developers could charge a price lower than 99 cents, there’s no doubt that some would, and the price curve would shift even lower.

Update (Dec. 28, 2008):

Daniel Jalkut (Red Sweater Software) ads his take in Touch and Go Pricing.

iPhone applications are too cheap, and changes are needed to encourage the development of premium applications that sell for a fair price.

Brent Simmons (NewsGator) follows up with On the App Store and Free Markets.

Some of the response Paul’s and Daniel’s recent writing about the App Store has gone something like this: It’s a free market — deal with it.

Here’s the thing, though: it’s not a free market.