The Role of Virtual Currencies in Player Retention: An Econometric Analysis
Charles Taylor 2025-02-04

The Role of Virtual Currencies in Player Retention: An Econometric Analysis

Thanks to Charles Taylor for contributing the article "The Role of Virtual Currencies in Player Retention: An Econometric Analysis".

The Role of Virtual Currencies in Player Retention: An Econometric Analysis

This research applies behavioral economics theories to the analysis of in-game purchasing behavior in mobile games, exploring how psychological factors such as loss aversion, framing effects, and the endowment effect influence players' spending decisions. The study investigates the role of game design in encouraging or discouraging spending behavior, particularly within free-to-play models that rely on microtransactions. The paper examines how developers use pricing strategies, scarcity mechanisms, and rewards to motivate players to make purchases, and how these strategies impact player satisfaction, long-term retention, and overall game profitability. The research also considers the ethical concerns associated with in-game purchases, particularly in relation to vulnerable players.

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