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Three Essays on the Economics of Video Games Platforms.

Record Type:	Electronic resources : Monograph/item
Title/Author:	Three Essays on the Economics of Video Games Platforms./
Author:	Lu, Wei.
Description:	1 online resource (152 pages)
Notes:	Source: Dissertations Abstracts International, Volume: 84-12, Section: B.
Contained By:	Dissertations Abstracts International84-12B.
Subject:	Mass communications. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=30313552click for full text (PQDT)
ISBN:	9798379766221

Three Essays on the Economics of Video Games Platforms.
Lu, Wei.

Three Essays on the Economics of Video Games Platforms. - 1 online resource (152 pages)

Source: Dissertations Abstracts International, Volume: 84-12, Section: B.

Thesis (Ph.D.)--University of Toronto (Canada), 2023.

Includes bibliographical references

Digital platforms distributing software products, such as the App Store, Google Play, and Steam, comprise a vital role in the digital economy. They facilitate the exchange of digital goods and services between firms and consumers and are the central marketplaces in the software industry. Nevertheless, the dynamic effect of platform design on firms and consumers remains under-investigated. This work examines the role of digital platforms, specifically video game platforms, on firm decisions and consumer behaviors from a dynamic perspective. In the first chapter, I investigate how platform commission changes affect software developers' innovation efforts and their consequences on platform revenue. Using a unique dataset of video games in the Early Access Program on Steam, I study how commission schemes can change both the product update decisions and the release decision to Steam's main Store of developers. In the counterfactual analysis, I further examine the impact of varying platform commission rates on product development decisions and find that lowering commissions can lead to more updates, but developers are over-investing in Early Access. This chapter is based on my job market paper with Avi Goldfarb and Nitin Mehta.The second chapter, a collaborative work with Daniel Goetz, examines the peer effect of the product adoption decisions of friends and strangers on consumers' purchase behavior. Using data on microtransactions in an online gaming app, I show that the marginal effect of friends' product adoptions is roughly twice as large as the marginal effect of strangers' product adoptions but that the two types of peer effects are substitutes. An estimated network diffusion model implies that peer effects from strangers alone can account for 69% of the total lift in product adoptions from social interactions.The third chapter studies the peak-end effect of consumer behavior on online software product usage. I examine this question empirically using data from two popular free-to-play online games and document three facts about user behavior: app usage (games played) clusters temporally in sessions, negative outcomes tend to prolong sessions, and positive outcomes at the end of a session decrease time to the next session. This chapter is also a joint work with Dan.

Electronic reproduction.
Ann Arbor, Mich. :
ProQuest,
2023

Mode of access: World Wide Web

ISBN: 9798379766221Subjects--Topical Terms:

3422380
Mass communications.
Subjects--Index Terms:

Online softwareIndex Terms--Genre/Form:

542853
Electronic books.

Three Essays on the Economics of Video Games Platforms.
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504 $a Includes bibliographical references
520 $a Digital platforms distributing software products, such as the App Store, Google Play, and Steam, comprise a vital role in the digital economy. They facilitate the exchange of digital goods and services between firms and consumers and are the central marketplaces in the software industry. Nevertheless, the dynamic effect of platform design on firms and consumers remains under-investigated. This work examines the role of digital platforms, specifically video game platforms, on firm decisions and consumer behaviors from a dynamic perspective. In the first chapter, I investigate how platform commission changes affect software developers' innovation efforts and their consequences on platform revenue. Using a unique dataset of video games in the Early Access Program on Steam, I study how commission schemes can change both the product update decisions and the release decision to Steam's main Store of developers. In the counterfactual analysis, I further examine the impact of varying platform commission rates on product development decisions and find that lowering commissions can lead to more updates, but developers are over-investing in Early Access. This chapter is based on my job market paper with Avi Goldfarb and Nitin Mehta.The second chapter, a collaborative work with Daniel Goetz, examines the peer effect of the product adoption decisions of friends and strangers on consumers' purchase behavior. Using data on microtransactions in an online gaming app, I show that the marginal effect of friends' product adoptions is roughly twice as large as the marginal effect of strangers' product adoptions but that the two types of peer effects are substitutes. An estimated network diffusion model implies that peer effects from strangers alone can account for 69% of the total lift in product adoptions from social interactions.The third chapter studies the peak-end effect of consumer behavior on online software product usage. I examine this question empirically using data from two popular free-to-play online games and document three facts about user behavior: app usage (games played) clusters temporally in sessions, negative outcomes tend to prolong sessions, and positive outcomes at the end of a session decrease time to the next session. This chapter is also a joint work with Dan.
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