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Money illusion in free-to-play games

Author

Listed:
  • Benti, Behailu Shiferaw
  • Haß, Dominik
  • Stadtmann, Georg

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.

Suggested Citation

  • Benti, Behailu Shiferaw & Haß, Dominik & Stadtmann, Georg, 2021. "Money illusion in free-to-play games," Discussion Papers 422, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    • Handle: RePEc:zbw:euvwdp:422
    DOI: 10.11584/opus4-1028
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • Z28 - Other Special Topics - - Sports Economics - - - Policy

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