2 papers analyzed
These studies suggest that self-regulation of microtransactions can improve customer relations and protect consumers, while spending caps on loot boxes are favored to prevent in-game value loss without harming gameplay.
The impact of microtransactions and loot boxes in video games has become a significant topic of debate among consumers, legislators, and industry stakeholders. These in-game purchases, particularly loot boxes, have raised concerns about their fairness, potential for predatory practices, and resemblance to gambling. This synthesis examines the effects of microtransactions and loot boxes on consumer behavior and the regulatory responses to these practices.
Regulatory Concerns and Self-Regulation Efforts:
Consumer Spending and Behavior:
Policy Implications and Welfare Effects:
The debate over microtransactions and loot boxes in video games centers on their potential for predatory practices and resemblance to gambling. While the industry is making efforts to self-regulate, the impact on consumer behavior varies, with a small group of players driving most of the revenue. Policy measures such as spending caps may offer a balanced approach to regulation, protecting consumers while preserving some of the benefits derived from these in-game purchases.
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