Virtual goods pricing and permission strategies

Sulin Ba, Dan Ke, Jan Stallaert, Zhongju Zhang

Research output: Chapter in Book/Report/Conference proceedingConference 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 languageEnglish (US)
Title of host publicationProceedings of 20th Annual Workshop on Information Technologies and Systems
PublisherSocial Science Research Network
StatePublished - 2010
Externally publishedYes
Event20th Annual Workshop on Information Technologies and Systems, WITS 2010 - St. Louis, MO, United States
Duration: Dec 11 2010Dec 12 2010

Other

Other20th Annual Workshop on Information Technologies and Systems, WITS 2010
CountryUnited States
CitySt. Louis, MO
Period12/11/1012/12/10

ASJC Scopus subject areas

  • Information Systems

Fingerprint Dive into the research topics of 'Virtual goods pricing and permission strategies'. Together they form a unique fingerprint.

  • Cite this

    Ba, S., Ke, D., Stallaert, J., & Zhang, Z. (2010). Virtual goods pricing and permission strategies. In Proceedings of 20th Annual Workshop on Information Technologies and Systems Social Science Research Network.