> There's a reason why these apps make it to the top; it's what people really want.
I think Apple as a monopolist intermediary (assuming we are talking about the iPhone market) has more of a role here than this invisible-hand argument implies.
It's Apple's choice to promote a top-N listing, which means that the already most popular apps get even more downloads. Fair enough, you might think, but it's Apple's choice how they count the top N. If they count number of purchases, then throwaway $1 apps will be favored over more substantial, more expensive apps; whereas if they count highest grossing, the more expensive apps will fare better.
I think Apple as a monopolist intermediary (assuming we are talking about the iPhone market) has more of a role here than this invisible-hand argument implies.
It's Apple's choice to promote a top-N listing, which means that the already most popular apps get even more downloads. Fair enough, you might think, but it's Apple's choice how they count the top N. If they count number of purchases, then throwaway $1 apps will be favored over more substantial, more expensive apps; whereas if they count highest grossing, the more expensive apps will fare better.