Virtual goods pricing and permission strategies

Sulin Ba; Dan Ke; Jan Stallaert; Zhongju Zhang

Virtual goods pricing and permission strategies

Sulin Ba, Dan Ke, Jan Stallaert, Zhongju Zhang

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

This paper examines the impact of the unique virtual goods permission settings (Copy, Modify, Transfer) on virtual goods creators' pricing strategies in a virtual world. We collect data of virtual items from the Second Life marketplace XStreet to explore the factors that affect virtual goods prices, using ANOVA and random effects model. Our empirical results show that "Copy" permission, which might be regarded to reduce the profit of the creators, has a positive effect in virtual goods pricing strategies. Furthermore, prices of virtual goods with "Copy" permission are higher than those without, and the more copies a consumer wants, the higher the price difference between the items with "Copy" and those without "Copy" permission.

Original language	English (US)
Title of host publication	Proceedings of 20th Annual Workshop on Information Technologies and Systems
Publisher	Social Science Research Network
State	Published - 2010
Externally published	Yes
Event	20th Annual Workshop on Information Technologies and Systems, WITS 2010 - St. Louis, MO, United States Duration: Dec 11 2010 → Dec 12 2010

Other

Other	20th Annual Workshop on Information Technologies and Systems, WITS 2010
Country/Territory	United States
City	St. Louis, MO
Period	12/11/10 → 12/12/10

ASJC Scopus subject areas

Information Systems

Cite this

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title = "Virtual goods pricing and permission strategies",

abstract = "This paper examines the impact of the unique virtual goods permission settings (Copy, Modify, Transfer) on virtual goods creators' pricing strategies in a virtual world. We collect data of virtual items from the Second Life marketplace XStreet to explore the factors that affect virtual goods prices, using ANOVA and random effects model. Our empirical results show that {"}Copy{"} permission, which might be regarded to reduce the profit of the creators, has a positive effect in virtual goods pricing strategies. Furthermore, prices of virtual goods with {"}Copy{"} permission are higher than those without, and the more copies a consumer wants, the higher the price difference between the items with {"}Copy{"} and those without {"}Copy{"} permission.",

author = "Sulin Ba and Dan Ke and Jan Stallaert and Zhongju Zhang",

year = "2010",

language = "English (US)",

booktitle = "Proceedings of 20th Annual Workshop on Information Technologies and Systems",

publisher = "Social Science Research Network",

note = "20th Annual Workshop on Information Technologies and Systems, WITS 2010 ; Conference date: 11-12-2010 Through 12-12-2010",

}

TY - GEN

T1 - Virtual goods pricing and permission strategies

AU - Ba, Sulin

AU - Ke, Dan

AU - Stallaert, Jan

AU - Zhang, Zhongju

PY - 2010

Y1 - 2010

N2 - This paper examines the impact of the unique virtual goods permission settings (Copy, Modify, Transfer) on virtual goods creators' pricing strategies in a virtual world. We collect data of virtual items from the Second Life marketplace XStreet to explore the factors that affect virtual goods prices, using ANOVA and random effects model. Our empirical results show that "Copy" permission, which might be regarded to reduce the profit of the creators, has a positive effect in virtual goods pricing strategies. Furthermore, prices of virtual goods with "Copy" permission are higher than those without, and the more copies a consumer wants, the higher the price difference between the items with "Copy" and those without "Copy" permission.

AB - This paper examines the impact of the unique virtual goods permission settings (Copy, Modify, Transfer) on virtual goods creators' pricing strategies in a virtual world. We collect data of virtual items from the Second Life marketplace XStreet to explore the factors that affect virtual goods prices, using ANOVA and random effects model. Our empirical results show that "Copy" permission, which might be regarded to reduce the profit of the creators, has a positive effect in virtual goods pricing strategies. Furthermore, prices of virtual goods with "Copy" permission are higher than those without, and the more copies a consumer wants, the higher the price difference between the items with "Copy" and those without "Copy" permission.

UR - http://www.scopus.com/inward/record.url?scp=84900386795&partnerID=8YFLogxK

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M3 - Conference contribution

AN - SCOPUS:84900386795

BT - Proceedings of 20th Annual Workshop on Information Technologies and Systems

PB - Social Science Research Network

T2 - 20th Annual Workshop on Information Technologies and Systems, WITS 2010

Y2 - 11 December 2010 through 12 December 2010

ER -

Virtual goods pricing and permission strategies

Abstract

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ASJC Scopus subject areas

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