There is no need to "install" the demo. You can simply unzip the downloaded file to any folder and jump right into it.
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The version on itch.io is just a demo. On Steam you can get and Early Access verion with 2 more nights + all the following nights as they come out. Those who buy the Early Access, will also get the full game for free when it's finished.
Thanks, we're really happy about GameTheory, too! :)) The demo with the 1st night will be free forever. As for the full price, 60 bucks is a total overkill for our game. This is not confirming anything, but we wouldn't go higher than 15-20$. Right now it's availabe on Steam for 10$ and we also do sales for it from time to time ;))