Dynamic Equilibrium in Virtual Goods Pricing: A Machine Learning Approach
Ruth Wood 2025-01-31

Dynamic Equilibrium in Virtual Goods Pricing: A Machine Learning Approach

Thanks to Ruth Wood for contributing the article "Dynamic Equilibrium in Virtual Goods Pricing: A Machine Learning Approach".

Dynamic Equilibrium in Virtual Goods Pricing: A Machine Learning Approach

Gaming has become a universal language, transcending geographical boundaries and language barriers. It allows players from all walks of life to connect, communicate, and collaborate through shared experiences, fostering friendships that span the globe. The rise of online multiplayer gaming has further strengthened these connections, enabling players to form communities, join guilds, and participate in global events, creating a sense of camaraderie and belonging in a digital world.

This paper examines the psychological factors that drive player motivation in mobile games, focusing on how developers can optimize game design to enhance player engagement and ensure long-term retention. The study investigates key motivational theories, such as Self-Determination Theory and the Theory of Planned Behavior, to explore how intrinsic and extrinsic factors, such as autonomy, competence, and relatedness, influence player behavior. Drawing on empirical studies and player data, the research analyzes how different game mechanics, such as rewards, achievements, and social interaction, shape players’ emotional investment and commitment to games. The paper also discusses the role of narrative, social comparison, and competition in sustaining player motivation over time.

This research critically examines the ethical considerations of marketing practices in the mobile game industry, focusing on how developers target players through personalized ads, in-app purchases, and player data analysis. The study investigates the ethical implications of targeting vulnerable populations, such as minors, by using persuasive techniques like loot boxes, microtransactions, and time-limited offers. Drawing on ethical frameworks in marketing and consumer protection law, the paper explores the balance between business interests and player welfare, emphasizing the importance of transparency, consent, and social responsibility in game marketing. The research also offers recommendations for ethical advertising practices that avoid manipulation and promote fair treatment of players.

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.

Indie game developers play a vital role in shaping the diverse landscape of gaming, bringing fresh perspectives, innovative gameplay mechanics, and compelling narratives to the forefront. Their creative freedom and entrepreneurial spirit fuel a culture of experimentation and discovery, driving the industry forward with bold ideas and unique gaming experiences that captivate players' imaginations.

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