Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach
Patrick Russell 2025-02-08

Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach

Thanks to Patrick Russell for contributing the article "Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach".

Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach

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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