Auction Mechanisms for In-Game Item Pricing: A Game-Theoretic Approach
Frances Long 2025-02-03

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

Thanks to Frances Long 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 study explores the social and economic implications of microtransactions in mobile gaming, focusing on player behavior, spending patterns, and the potential for addiction. It also investigates the broader effects on the gaming industry, such as the shift in business models, the emergence of virtual economies, and the ethical concerns surrounding "pay-to-win" mechanics. The research offers policy recommendations to address these issues in a balanced manner.

This study presents a multidimensional framework for understanding the diverse motivations that drive player engagement across different mobile game genres. By drawing on Self-Determination Theory (SDT), the research examines how intrinsic and extrinsic motivation factors—such as achievement, autonomy, social interaction, and competition—affect player behavior and satisfaction. The paper explores how various game genres (e.g., casual, role-playing, and strategy games) tailor their game mechanics to cater to different motivational drivers. It also evaluates how player motivation impacts retention, in-game purchases, and long-term player loyalty, offering a deeper understanding of game design principles and their role in shaping player experiences.

This paper offers a historical and theoretical analysis of the evolution of mobile game design, focusing on the technological advancements that have shaped gameplay mechanics, user interfaces, and game narratives over time. The research traces the development of mobile gaming from its inception to the present day, considering key milestones such as the advent of touchscreen interfaces, the rise of augmented reality (AR), and the integration of artificial intelligence (AI) in mobile games. Drawing on media studies and technology adoption theory, the paper examines how changing technological landscapes have influenced player expectations, industry trends, and game design practices.

This paper examines the application of behavioral economics and game theory in understanding consumer behavior within the mobile gaming ecosystem. It explores how concepts such as loss aversion, anchoring bias, and the endowment effect are leveraged by mobile game developers to influence players' in-game spending, decision-making, and engagement. The study also introduces game-theoretic models to analyze the strategic interactions between developers, players, and other stakeholders, such as advertisers and third-party service providers, proposing new models for optimizing user acquisition and retention strategies in the competitive mobile game market.

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