Continuing the “Macy’s and Nike” analogy where “Macy’s” is simply giving “Nike” a better deal in order to compete with “Galaxy Shoes,” Gentzkow says it’s natural that “Nike” wouldn’t be as likely to open its own store if it’s getting a good deal from “Macy’s” — that’s competition working, he suggests.
“Project Hug offers valuable things to developers in exchange for putting their apps into the store, and it’s natural” to expect the “Nikes” of the world to put their latest and greatest apps on Google Play right away as part of said deal, he argues.
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