Behavioral Economics of In-Game Auctions: A Multi-Agent Simulation Approach
Amy Ward 2025-02-01

Behavioral Economics of In-Game Auctions: A Multi-Agent Simulation Approach

Thanks to Amy Ward for contributing the article "Behavioral Economics of In-Game Auctions: A Multi-Agent Simulation Approach".

Behavioral Economics of In-Game Auctions: A Multi-Agent Simulation Approach

Gaming culture has transcended borders and languages, emerging as a vibrant global community that unites people from all walks of life under the banner of shared enthusiasm for interactive digital experiences. From casual gamers to hardcore enthusiasts, gaming has become a universal language, fostering connections, friendships, and even rivalries that span continents and time zones.

Gamification extends beyond entertainment, infiltrating sectors such as marketing, education, and workplace training with game-inspired elements such as leaderboards, achievements, and rewards systems. By leveraging gamified strategies, businesses enhance user engagement, foster motivation, and drive desired behaviors, harnessing the power of play to achieve tangible goals and outcomes.

Gaming addiction is a complex issue that warrants attention and understanding, as some individuals struggle to find a healthy balance between their gaming pursuits and other responsibilities. It's important to promote responsible gaming habits, encourage breaks, and offer support to those who may be experiencing challenges in managing their gaming habits and overall well-being.

This research applies behavioral economics theories to the analysis of in-game purchasing behavior in mobile games, exploring how psychological factors such as loss aversion, framing effects, and the endowment effect influence players' spending decisions. The study investigates the role of game design in encouraging or discouraging spending behavior, particularly within free-to-play models that rely on microtransactions. The paper examines how developers use pricing strategies, scarcity mechanisms, and rewards to motivate players to make purchases, and how these strategies impact player satisfaction, long-term retention, and overall game profitability. The research also considers the ethical concerns associated with in-game purchases, particularly in relation to vulnerable players.

This research explores the role of big data and analytics in shaping mobile game development, particularly in optimizing player experience, game mechanics, and monetization strategies. The study examines how game developers collect and analyze data from players, including gameplay behavior, in-app purchases, and social interactions, to make data-driven decisions that improve game design and player engagement. Drawing on data science and game analytics, the paper investigates the ethical considerations of data collection, privacy issues, and the use of player data in decision-making. The research also discusses the potential risks of over-reliance on data-driven design, such as homogenization of game experiences and neglect of creative innovation.

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