The determinants of monetary value of virtual goods: An empirical study for a cross-section of MMORPGs

Qiu-Hong Wang (), Viktor Mayer-Schönberger () and Xue Yang ()
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Qiu-Hong Wang: School of Management, Huazhong University of Science & Technology
Viktor Mayer-Schönberger: Oxford Internet Institute, University of Oxford
Xue Yang: School of Management(Business), Nanjing University

Information Systems Frontiers, 2013, vol. 15, issue 3, No 11, 495 pages

Abstract: 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 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10796-011-9339-4

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