Publication Type

Conference Proceeding Article

Version

publishedVersion

Publication Date

8-2012

Abstract

We use hedonic valuation to establish a basis for valuing the time a user participates in an online gaming community. We distinguish between utilitarian and hedonic value. Our application involves elements of both utilitarian and hedonic value, however, the latter is much more important. We use an extensive data set involving a massive multi-player online role-playing game (MMORPG) from Korea. We specify and test econometric models that reflect the appropriate empirical structure for the setting, based on information about the players and the activities they engage in. The results permit us to estimate the hedonic value in monetary terms for the use of this mechanism per minute of participant use. We explore how such information can be used to create the appropriate incentives via optimal participation fees and subsidies to maximize consumer value.

Keywords

Economic analysis, hedonic pricing model, hedonic value, mechanism design, online games, utilitarian value, valuation.

Discipline

Computer Sciences | Management Information Systems

Research Areas

Information Systems and Management

Publication

CEC '12: 14th Annual International Conference on Electronic Commerce, Singapore, 7-8 August 2012: Proceedings

First Page

290

Last Page

291

ISBN

9781450311977

Identifier

10.1145/2346536.2346594

Publisher

ACM

City or Country

New York

Additional URL

http://dx.doi.org/10.1145/2346536.2346594

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