Virtual items trade in online social games

Qiao-Chu He

International Journal of Production Economics, 2017, vol. 187, issue C, 1-14

Abstract: This paper studies the virtual item trades in online social games. Game players are heterogeneous in terms of gaming experience, and experienced game players are more efficient in acquiring virtual items. We find that it is possible for a contribution-maximizing platform to match the efficient player with the low-end market, depending on the interplays between social interactions and efficiency heterogeneity. The market share of each game player increases in her social influence and decreases in her propensity to be influenced.

Keywords: Social network; Two-sided market; Online games; Virtual items (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:187:y:2017:i:c:p:1-14

DOI: 10.1016/j.ijpe.2017.02.009

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