Analyzing the Impact of Game Vendors' Actions on the Monetary Value of Virtual Goods

Abstract

Computer games have become an influential socio-economic phenomenon. Millions of people play online games regularly. At the same time, game vendors' revenues are increasing. As a new emergence, virtual (i.e. in-game) goods are traded for real money. However, not much research has been conducted on the monetary effects of virtual economies. Therefore, the authors present the theoretical background and a study aiming to understand how game vendors' actions reflect on the monetary value of virtual goods. The study is based on a huge dataset gained from Web shops that were monitored over a period of several months. The data was analysed in order to find out whether effects known from real economies apply to their virtual counterparts. A reset of the virtual economy allowed us to exactly follow price developments. The authors present and discuss their findings, as well as derive directions for future research.