Hedonic Valuation of Online Game Participation

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearch


We use hedonic valuation to establish a basis for valuing the time a user participates in an online gaming community. We distinguish between utilitarian and hedonic value. Our application involves elements of both utilitarian and hedonic value, however, the latter is much more important. We use an extensive data set involving a massive multi-player online role-playing game (MMORPG) from Korea. We specify and test econometric models that reflect the appropriate empirical structure for the setting, based on information about the players and the activities they engage in. The results permit us to estimate the hedonic value in monetary terms for the use of this mechanism per minute of participant use. We explore how such information can be used to create the appropriate incentives via optimal participation fees and subsidies to maximize consumer value.
Original languageEnglish
Title of host publicationCEC '12: Proceedings of the 14th Annual International Conference on Electronic Commerce
Number of pages2
Place of PublicationNew York
PublisherAssociation for Computing Machinery
Publication date2012
ISBN (Electronic)9781450311977
Publication statusPublished - 2012
Externally publishedYes
EventThe 14th Annual International Conference on Electronic Commerce - Singapore, Singapore
Duration: 7 Aug 20128 Aug 2012
Conference number: 14


ConferenceThe 14th Annual International Conference on Electronic Commerce


  • Economic analysis
  • Hedonic pricing model
  • Hedonic value
  • Mechanism design
  • Online games
  • Utilitarian value
  • Valuation

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