IDEAS home Printed from https://ideas.repec.org/a/spr/infosf/v15y2013i3d10.1007_s10796-011-9339-4.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Qiu-Hong Wang & Viktor Mayer-Schönberger & Xue Yang, 2013. "The determinants of monetary value of virtual goods: An empirical study for a cross-section of MMORPGs," Information Systems Frontiers, Springer, vol. 15(3), pages 481-495, July.
    • Handle: RePEc:spr:infosf:v:15:y:2013:i:3:d:10.1007_s10796-011-9339-4
    DOI: 10.1007/s10796-011-9339-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10796-011-9339-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10796-011-9339-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Edward Castronova, "undated". "Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier," Gruter Institute Working Papers on Law, Economics, and Evolutionary Biology 2-1-1008, Berkeley Electronic Press.
    2. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    3. Edward Castronova, 2001. "Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier," CESifo Working Paper Series 618, CESifo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Young Bin Kim & Sang Hyeok Lee & Shin Jin Kang & Myung Jin Choi & Jung Lee & Chang Hun Kim, 2015. "Virtual World Currency Value Fluctuation Prediction System Based on User Sentiment Analysis," PLOS ONE, Public Library of Science, vol. 10(8), pages 1-18, August.
    2. Yulei Gavin Zhang & Mandy Yan Dang & Hsinchun Chen, 2020. "An Explorative Study on the Virtual World: Investigating the Avatar Gender and Avatar Age Differences in their Social Interactions for Help-Seeking," Information Systems Frontiers, Springer, vol. 22(4), pages 911-925, August.
    3. Jongchang Ahn & Kyungran Ma & Ook Lee & Suaini Sura, 0. "Do big data support TV viewing rate forecasting? A case study of a Korean TV drama," Information Systems Frontiers, Springer, vol. 0, pages 1-10.
    4. E. Mitchell Church & Richelle L. Oakley, 2018. "Etsy and the long-tail: how microenterprises use hyper-differentiation in online handicraft marketplaces," Electronic Commerce Research, Springer, vol. 18(4), pages 883-898, December.
    5. Jongchang Ahn & Kyungran Ma & Ook Lee & Suaini Sura, 2017. "Do big data support TV viewing rate forecasting? A case study of a Korean TV drama," Information Systems Frontiers, Springer, vol. 19(2), pages 411-420, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karol Borowiecki & Juan Prieto-Rodriguez, 2015. "Video games playing: A substitute for cultural consumptions?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(3), pages 239-258, August.
    2. Edward Castronova, 2008. "A Test of the Law of Demand in a Virtual World: Exploring the Petri Dish Approach to Social Science," CESifo Working Paper Series 2355, CESifo.
    3. Sousa, Yannick Ferreira De & Munro, Alistair, 2012. "Truck, barter and exchange versus the endowment effect: Virtual field experiments in an online game environment," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 482-493.
    4. Olivier Hueber, 2011. "Innovation in virtual social networks: the widespread of new electronic currencies and the emergence of a new category of entrepreneurs," International Journal of Transitions and Innovation Systems, Inderscience Enterprises Ltd, vol. 1(2), pages 163-174.
    5. Sascha Fullbrunn & Katharina Richwien & Abdolkarim Sadrieh, 2011. "Trust and Trustworthiness in Anonymous Virtual Worlds," Journal of Media Economics, Taylor & Francis Journals, vol. 24(1), pages 48-63.
    6. Michael Morrison & Matías Fontenla, 2013. "Price convergence in an online virtual world," Empirical Economics, Springer, vol. 44(3), pages 1053-1064, June.
    7. Nenad Živić & Igor Andjelković & Tolga Özden & Milovan Dekić & Edward Castronova, 2017. "Results of a massive experiment on virtual currency endowments and money demand," PLOS ONE, Public Library of Science, vol. 12(10), pages 1-14, October.
    8. Carl Mildenberger, 2015. "Virtual world order: the economics and organizations of virtual pirates," Public Choice, Springer, vol. 164(3), pages 401-421, September.
    9. Fiedler, Marina & Haruvy, Ernan & Li, Sherry Xin, 2011. "Social distance in a virtual world experiment," Games and Economic Behavior, Elsevier, vol. 72(2), pages 400-426, June.
    10. Yang, Yan-Hong & Xie, Wen-Jie & Li, Ming-Xia & Jiang, Zhi-Qiang & Zhou, Wei-Xing, 2017. "Statistical properties of user activity fluctuations in virtual worlds," Chaos, Solitons & Fractals, Elsevier, vol. 105(C), pages 271-278.
    11. Edward Castronova, 2003. "Theory of the Avatar," CESifo Working Paper Series 863, CESifo.
    12. Edward Castronova, 2004. "The Price of Bodies: A Hedonic Pricing Model of Avatar Attributes in a Synthetic World," Kyklos, Wiley Blackwell, vol. 57(2), pages 173-196, May.
    13. Fiedler, Marina & Haruvy, Ernan, 2009. "The lab versus the virtual lab and virtual field--An experimental investigation of trust games with communication," Journal of Economic Behavior & Organization, Elsevier, vol. 72(2), pages 716-724, November.
    14. Edward Castronova, 2005. "On the Research Value of Large Games: Natural Experiments in Norrath and Camelot," CESifo Working Paper Series 1621, CESifo.
    15. Karol J. Borowiecki & Hasan Bakhshi, 2017. "Video Games is Cultural Participation: Understanding Games Playing In England Using The Taking Part Survey," ACEI Working Paper Series AWP-05-2017, Association for Cultural Economics International, revised Mar 2017.
    16. Justin Rex & David J. Jackson, 2009. "Window of Opportunity? Internet Gambling in Canada," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 121-137, March.
    17. Edward Castronova, 2003. "The Price of "Man" and "Woman": A Hedonic Pricing Model of Avatar Attributes in a Synthetic World," CESifo Working Paper Series 957, CESifo.
    18. Dymek, Mikolaj, 2006. "Communities build up Steam," Pink Machine Papers 26, Royal Institute of Technology, Department of Industrial Economics and Management.
    19. Karol J. Borowiecki & Juan Prieto-Rodriguez, 2017. "The Cultural Value and Variety of Playing Video Games," ACEI Working Paper Series AWP-01-2017, Association for Cultural Economics International, revised Jan 2017.
    20. Hillebrand, Eric & Schnabl, Gunther & Ulu, Yasemin, 2009. "Japanese foreign exchange intervention and the yen-to-dollar exchange rate: A simultaneous equations approach using realized volatility," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 19(3), pages 490-505, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:infosf:v:15:y:2013:i:3:d:10.1007_s10796-011-9339-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.