The Determinants of Monetary Value of Virtual Goods: An Empirical Study for a Cross-section of MMORPGs
Publication Type
Journal Article
Publication Date
7-2013
Abstract
This study investigates the monetary value of virtual goods in the context of 24 most popular massively multiplayer online role-playing games (MMORPGs). Building on classic economic theory, we approach this issue through a combination of experimentation and cross-sectional time series data analysis. Our findings suggest that more intensive social networking and flatter social hierarchical structures are associated with lower monetary value of virtual goods across various MMORPGs. Instead, a larger base of active users increases the potential demand and thus the monetary value of virtual goods in the short run. A steeper social hierarchical structure further strengthens the effect. The implication is that social networking and hierarchical structure can be two effective angles for game developers or policy makers to address the issue of real-money trading of virtual goods.
Keywords
Massively multiplayer online role playing game (MMORPG), Virtual world, Real-money trading
Discipline
Computer Sciences | E-Commerce
Research Areas
Information Systems and Management
Publication
Information Systems Frontiers
Volume
15
Issue
3
First Page
481
Last Page
495
ISSN
1387-3326
Identifier
10.1007/s10796-011-9339-4
Citation
QIU-HONG WANG; Mayer-Schonberger, Viktor; and YANG, Xue.
The Determinants of Monetary Value of Virtual Goods: An Empirical Study for a Cross-section of MMORPGs. (2013). Information Systems Frontiers. 15, (3), 481-495.
Available at: https://ink.library.smu.edu.sg/sis_research/3220
Additional URL
http://dx.doi.org/10.1007/s10796-011-9339-4