Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/231495 
Year of Publication: 
2021
Series/Report no.: 
Discussion Paper No. 422
Publisher: 
European University Viadrina, Department of Business Administration and Economics, Frankfurt (Oder)
Abstract: 
Regularly, free-to-play games use their own virtual currency for in-game store purchases. We analyze the money illusion phenomenon by examining free-to-playgames and their virtual currency exchange rate policies. We find that above pari exchange rates and advertising bonus packs instead of price discounts lead to money illusion on the side of the customer. Based on our findings, we derive managerial and policy implications.
Subjects: 
Money illusion
free-to-play games
virtual currency exchange rate
price incentives
bonus pack versus price discount
JEL: 
D18
L88
M37
Z28
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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