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Virtual items trade in online social games

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  • He, Qiao-Chu

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.

Suggested Citation

  • He, Qiao-Chu, 2017. "Virtual items trade in online social games," International Journal of Production Economics, Elsevier, vol. 187(C), pages 1-14.
    • Handle: RePEc:eee:proeco:v:187:y:2017:i:c:p:1-14
    DOI: 10.1016/j.ijpe.2017.02.009
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