Thesis
Zero dollar pricing in video games and apps
Washington State University
Master of Science (MS), Washington State University
05/2020
DOI:
https://doi.org/10.7273/000004062
Handle:
https://hdl.handle.net/2376/125254
Abstract
In the market for video games and apps, a $0 download price is often observed. This thesis presents a model that explains why a zero price would exist for a normal good. The answer lies in the exploitation of network effects by the game developer. To the extent that a game developer can generate high participation in a game with lots of downloads, the developer can then entice players to execute microtransactions at relatively high prices. Extensive profits from microtransactions are dependent on wide-spread adoption of the game and the resulting network effects. Game developers motivate players to download the game by charging a zero price.
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Details
- Title
- Zero dollar pricing in video games and apps
- Creators
- Miles Love
- Contributors
- Felix Munoz-Garcia (Advisor) - Washington State University, School of Economic Sciences
- Awarding Institution
- Washington State University
- Academic Unit
- School of Economic Sciences
- Theses and Dissertations
- Master of Science (MS), Washington State University
- Publisher
- Washington State University
- Identifiers
- 99900890791401842
- Language
- English
- Resource Type
- Thesis