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Proposal

Proposal. Pricing Virtual Assets In The Real World Ivan. Outline. Background Motivation Problem Related Work Methodology Experiment. Background. There are more and more free online games Ex. 天使之戀、跑跑卡丁車、楓之谷

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Proposal

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  1. Proposal Pricing Virtual Assets In The Real World Ivan

  2. Outline • Background • Motivation • Problem • Related Work • Methodology • Experiment Thesis Proposal

  3. Background • There are more and more free online games • Ex. 天使之戀、跑跑卡丁車、楓之谷 • However, the game company sells virtual assets in the real market to make profit • Ex. Fashion clothes, items that will improve the players’ ability • “The market for virtual-asset trading could hit $1.5 billion in 2005 and $2.7 billion in 2006” [1] [1] http://www.forbes.com/2005/10/20/onlinegaming-worldofwarcraft-gaming-cx_1021wharton.html Thesis Proposal

  4. Background (cont.) • Use NTD to exchange the virtual coins • Ex. 1:1 exchange (from 天使之戀) Thesis Proposal

  5. Motivation • The game company would like to make maximal profit • But how to set the NTD price of the virtual assets • Set too low is no economic benefits • Set too high nobody will purchase Thesis Proposal

  6. Problem • For game companies, how to set the NTD price of the virtual assets to maximize the profit gained from the free games Thesis Proposal

  7. Related Work • A few previous work show that the different user perceptions or designer strategies of the real-money trade of virtual assets [2][3] [2] Vili Lehdonvirta, “REAL-MONEY TRADE OF VIRTUAL ASSETS: NEW STRATEGIES FOR VIRTUAL WORLD OPERATORS”, Proceedings of Future Play, 2005 [3] Vili Lehdonvirta, “Real-Money Trade of Virtual Assets: Ten Different User Perceptions”, Proceedings of DAC 2005 Thesis Proposal

  8. Related Work (cont.) • Traditionally, price of real assets may be set by • Cost plus expected profit • Market Survey • Competition…[4] • Virtual assets is unusual • Physical cost is implicit (i.e. design cost) • Easy to distribute (i.e. copy) [4]Harvard Business Review Feb 2005 Thesis Proposal

  9. Methodology • Use the data from game company to find the “Desire Degree” (DD) function of the virtual assets - Deeply depend on the data - Direct proportion to price - Inverse proportion to time in market • Find the NTD of the virtual assets, similar or the same ones, in real market - Similar “function” or “attribute” • Use statistic scheme to find the relationship between DD and NTD - Interpolation, Linear regression, Iteration… Define DD func. Data Set Find NTD Mapping DD & NTD Thesis Proposal

  10. Challenge • How to discover the base NTD, i.e. the reasonable NTD of items • Straightforward way DD X (200) Y (300) Z (400) NTD X’ (50) Y’ (20) Z’ (40) # low high medium • Use the correct DD func. to tune the NTD  Maximize the profit Thesis Proposal

  11. Experiment • Verify • DD func. • Mapping DD onto NTD • Confirm if the function can be applied to other games • Trace the profit of the game company Thesis Proposal

  12. Data Set • Get data from the game company (天使之戀) • Choose the items (virtual assets) that are representative (i.e. popular, common) • Characteristics of the chosen items • Transaction record • Between players and Virtual market (time, customer, price) • Between players each other (time, C/S, price) • Quantities of items in game (time, amount) • Attributes (level, attack, armor, restoration…) Thesis Proposal

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