Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach
Kenneth Nelson 2025-02-08

Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach

Thanks to Kenneth Nelson for contributing the article "Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach".

Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach

This research investigates the ethical and psychological implications of microtransaction systems in mobile games, particularly in free-to-play models. The study examines how microtransactions, which allow players to purchase in-game items, cosmetics, or advantages, influence player behavior, spending habits, and overall satisfaction. Drawing on ethical theory and psychological models of consumer decision-making, the paper explores how microtransactions contribute to the phenomenon of “pay-to-win,” exploitation of vulnerable players, and player frustration. The research also evaluates the psychological impact of loot boxes, virtual currency, and in-app purchases, offering recommendations for ethical monetization practices that prioritize player well-being without compromising developer profitability.

This paper investigates the use of mobile games and gamification techniques in areas beyond entertainment, such as education, healthcare, and corporate training. It examines how game mechanics are applied to encourage desired behaviors, improve productivity, and enhance learning outcomes. The study also analyzes the effectiveness and challenges of gamification strategies, highlighting case studies from various industries.

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.

Game streaming platforms like Twitch, YouTube Gaming, and Mixer have revolutionized how gamers consume and interact with gaming content, turning everyday players into content creators, influencers, and entertainers. Livestreamed gameplay, interactive chats, and community engagement redefine the gaming experience, transforming passive consumption into dynamic, participatory entertainment.

This study leverages mobile game analytics and predictive modeling techniques to explore how player behavior data can be used to enhance monetization strategies and retention rates. The research employs machine learning algorithms to analyze patterns in player interactions, purchase behaviors, and in-game progression, with the goal of forecasting player lifetime value and identifying factors contributing to player churn. The paper offers insights into how game developers can optimize their revenue models through targeted in-game offers, personalized content, and adaptive difficulty settings, while also discussing the ethical implications of data collection and algorithmic decision-making in the gaming industry.

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