Selling Virtual Items in Free-to-Play Games: Transparent Selling vs. Opaque Selling

References

• Anderson CK, Xie X (2014) Pricing and market segmentation using opaque selling mechanisms. Eur. J. Oper. Res. 233(1):263–272.Crossref, Google Scholar
• Au PH (2015) Dynamic information disclosure. RAND J. Econom. 46(4):791–823.Crossref, Google Scholar
• Bergemann D, Pesendorfer M (2007) Information structures in optimal auctions. J. Econom. Theory. 137(1):580–609.Crossref, Google Scholar
• Board O (2009a) Competition and disclosure. J. Indust. Econom. 57(1):197–213.Crossref, Google Scholar
• Board S (2009b) Revealing information in auctions: The allocation effect. Econom. Theory 38(1):125–135.Crossref, Google Scholar
• Boot AW, Thakor AV (2001) The many faces of information disclosure. Rev. Financial Stud. 14(4):1021–1057.Crossref, Google Scholar
• Chen N, Elmachtoub AN, Hamilton M, Lei X (2020) Loot box pricing and design. Proc. 21st ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 291–292.Crossref, Google Scholar
• Chen RR, Gal-Or E, Roma P (2014) Opaque distribution channels for competing service providers: Posted price vs. name-your-own-price mechanisms. Oper. Res. 62(4):733–750.Link, Google Scholar
• Cho SH, Fang X, Tayur S, Xu Y (2019) Combating child labor: Incentives and information disclosure in global supply chains. Manufacturing Service Oper. Management 21(3):692–711.Link, Google Scholar
• Deterding S (2012) Gamification: Designing for motivation. Interaction 19(4):14–17.Crossref, Google Scholar
• Elmachtoub AN, Hamilton M (2021) The power of opaque products in pricing. Management Sci. ePub ahead of print January 20, https://doi.org/10.1287/mnsc.2020.3750.Google Scholar
• Eső P, Szentes B (2007) Optimal information disclosure in auctions and the handicap auction. Rev. Econom. Stud. 74(3):705–731.Crossref, Google Scholar
• Fang B, Zheng Z, Ye Q, Goes PB (2019) Social influence and monetization of freemium social games. J. Management Inform. Systems 36(3):730–754.Crossref, Google Scholar
• Faure-Grimaud A, Peyrache E, Quesada L (2009) The ownership of ratings. RAND J. Econom. 40(2):234–257.Crossref, Google Scholar
• Fay S (2008) Selling an opaque product through an intermediary: The case of disguising one’s product. J. Retailing 84(1):59–75.Crossref, Google Scholar
• Fay S, Xie J (2008) Probabilistic goods: A creative way of selling products and services. Marketing Sci. 27(4):674–690.Link, Google Scholar
• Fay S, Xie J (2014) Timing of product allocation: Using probabilistic selling to enhance inventory management. Management Sci. 61(2):474–484.Link, Google Scholar
• Fay S, Xie J, Feng C (2015) The effect of probabilistic selling on the optimal product mix. J. Retailing 91(3):451–467.Crossref, Google Scholar
• Ferman B (2016) Reading the fine print: Information disclosure in the Brazilian credit card market. Management Sci. 62(12):3534–3548.Link, Google Scholar
• Goldstein I, Yang L (2017) Information disclosure in financial markets. Annu. Rev. Financial Econom. 9:101–125.Crossref, Google Scholar
• Granados N, Han K, Zhang D (2018) Demand and revenue impacts of an opaque channel: Evidence from the airline industry. Production Oper. Management 27(11):2010–2024.Crossref, Google Scholar
• Grossman SJ (1981) The informational role of warranties and private disclosure about product quality. J. Law Econom. 24(3):461–483.Crossref, Google Scholar
• Guo L (2009) Quality disclosure formats in a distribution channel. Management Sci. 55(9):1513–1526.Link, Google Scholar
• Guo Y, Barnes S (2007) Why people buy virtual items in virtual worlds with real money. ACM SIGMIS Database: Database Adv. Inform. Systems 38(4):69–76.Crossref, Google Scholar
• Guo L, Zhao Y (2009) Voluntary quality disclosure and market interaction. Marketing Sci. 28(3):488–501.Link, Google Scholar
• Guo H, Hao L, Mukhopadhyay T, Sun D (2019) Selling virtual currency in digital games: Implications for gameplay and social welfare. Inform. Systems Res. 30(2):430–446.Link, Google Scholar
• Hamari J (2015) Why do people buy virtual goods? Attitude toward virtual good purchases vs. game enjoyment. Internat. J. Inform. Management 35(3):299–308.Crossref, Google Scholar
• Hamari J, Hanner N, Koivisto J (2020) “Why pay premium in freemium services?” A study on perceived value, continued use and purchase intentions in free-to-play games. Internat. J. Inform. Management 51:102040.Crossref, Google Scholar
• Hao L, Tan Y (2019) Who wants consumers to be informed? Facilitating information disclosure in a distribution channel. Inform. Systems Res. 30(1):34–49.Link, Google Scholar
• Hofacker CF, De Ruyter K, Lurie NH, Manchanda P, Donaldson J (2016) Gamification and mobile marketing effectiveness. J. Interactive Marketing 34:25–36.Crossref, Google Scholar
• Hotz VJ, Xiao M (2013) Strategic information disclosure: The case of multiattribute products with heterogeneous consumers. Econom. Inquiry 51(1):865–881.Crossref, Google Scholar
• Huang T, Yu Y (2014) Sell probabilistic goods? A behavioral explanation for opaque selling. Marketing Sci. 33(5):743–759.Link, Google Scholar
• Huang Y, Jasin S, Manchanda P (2019) “Level up”: Leveraging skill and engagement to maximize player game-play in online video games. Inform. Systems Res. 30(3):927–947.Link, Google Scholar
• Jerath K, Netessine S, Veeraraghavan SK (2009) Selling to strategic customers: Opaque selling strategies. Tang C, Netessine S, eds. Consumer-Driven Demand and Operations Management Models (Springer, Boston), 253–300.Crossref, Google Scholar
• Jiang Y (2007) Price discrimination with opaque products. J. Revenue Pricing Management 6(2):118–134.Crossref, Google Scholar
• Kuksov D, Lin Y (2010) Information provision in a vertically differentiated competitive marketplace. Marketing Sci. 29(1):122–138.Link, Google Scholar
• Li H, Shi X (2017) Discriminatory information disclosure. Amer. Econom. Rev. 107(11):3363–3385.Crossref, Google Scholar
• Li Q, Tang CS, Xu H (2020) Mitigating the double-blind effect in opaque selling: Inventory and information. Production Oper. Management 29(1):35–54Crossref, Google Scholar
• Liu D, Li X, Santhanam R (2013) Digital games and beyond: What happens when players compete? MIS Quart. 37(1):111–124.Crossref, Google Scholar
• Lu Y, Gupta A, Ketter W, Van Heck E (2019) Information transparency in business-to-business auction markets: The role of winner identity disclosure. Management Sci. 65(9):4261–4279.Link, Google Scholar
• Malone TW (1981) Toward a theory of intrinsically motivating instruction. Cognitive Sci. 5(4):333–369.Crossref, Google Scholar
• Manninen T, Kujanpää T (2007) The value of virtual assets: The role of game characters in MMOGs. Internat. J. Bus. Sci. Appl. Management 2(1):21–33.Google Scholar
• Matthews S, Postlewaite A (1985) Quality testing and disclosure. RAND J. Econom. 16(3):328–340.Crossref, Google Scholar
• Milgrom PR (1981) Good news and bad news: Representation theorems and applications. Bell J. Econom. 12(2):380–391.Crossref, Google Scholar
• Milgrom PR, Weber RJ (1982) A theory of auctions and competitive bidding. Econometrica 50(5):1089–1122.Crossref, Google Scholar
• Nandhakumar J, Panourgias NS, Scarbrough H (2013) From knowing it to “getting it”: Envisioning practices in computer games development. Inform. Systems Res. 24(4):933–955.Link, Google Scholar
• Rayo L, Segal I (2010) Optimal information disclosure. J. Political Econom. 118(5):949–987.Crossref, Google Scholar
• Ryan RM, Rigby CS, Przybylski A (2006) The motivational pull of video games: A self-determination theory approach. Motivation Emotion 30(4):344–360.Crossref, Google Scholar
• Shapiro D, Shi X (2008) Market segmentation: The role of opaque travel agencies. J. Econom. Management Strategy 17(4):803–837.Crossref, Google Scholar
• Shavell S (1994) Acquisition and disclosure of information prior to sale. RAND J. Econom. 25(1):20–36.Crossref, Google Scholar
• Wijman T (2019) Newzoo adjusts global games forecast to $148.8 billion; slower growth in console spending starts sooner than expected. Accessed June 10, 2020, https://newzoo.com/insights/articles/newzoo-adjusts-global-games-forecast-to-148-8-billion-slower-growth-in-console-spending-starts-sooner-than-expected/.Google Scholar
• Wu CC, Chen YJ, Cho YJ (2013) Nested network effects in online free games with accessory selling. J. Interactive Marketing 27(3):158–171.Crossref, Google Scholar
• Yee N (2006) Motivations for play in online games. Cyberpsych. Behav. 9(6):772–775.Crossref, Google Scholar
• Yoon TJ (2020) Quality information disclosure and patient reallocation in the healthcare industry: Evidence from cardiac surgery report cards. Marketing Sci. 39(3):636–662.Link, Google Scholar
• Yosha O (1995) Information disclosure costs and the choice of financing source. J. Financial Intermediation 4(1):3–20.Crossref, Google Scholar
• Zhou Z, Fang Y, Vogel DR, Jin XL, Zhang X (2012) Attracted to or locked in? Predicting continuance intention in social virtual world services. J. Management Inform. Systems 29(1):273–306.Crossref, Google Scholar
• Zhu F, Zhang X (2010) Impact of online consumer reviews on sales: The moderating role of product and consumer characteristics. J. Marketing 74(2):133–148.Crossref, Google Scholar