“…Our contribution to the operations management literature is being the first to investigate quality, pricing, and financing decisions within the context of the freemium business model with optional in-app purchases. In contrast to models developed for tangible products, which consider inventory, shortage, and delivery costs (see, e.g., Kogan et al, 2018;Herbon, 2019;David and Herbon 2021;Shi et al, 2021), our model is tailored for the mobileapp industry, in which the freemium business model is commonly applied, the distribution cost is negligible, and there is ample capacity to fulfill demand instantaneously (Avinadav et al, 2021).…”