Money illusion in free-to-play games

Behailu Shiferaw Benti, Dominik Haß and Georg Stadtmann

No 422, Discussion Papers from European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics

Abstract: Regularly, free-to-play games use their own virtual currency for in-game store purchases. We analyze the money illusion phenomenon by examining free-to-playgames and their virtual currency exchange rate policies. We find that above pari exchange rates and advertising bonus packs instead of price discounts lead to money illusion on the side of the customer. Based on our findings, we derive managerial and policy implications.

Keywords: Money illusion; free-to-play games; virtual currency exchange rate; price incentives; bonus pack versus price discount (search for similar items in EconPapers)
JEL-codes: D18 L88 M37 Z28 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/231495/1/1750556200.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:euvwdp:422

DOI: 10.11584/opus4-1028

Access Statistics for this paper

More papers in Discussion Papers from European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().