Group items tagged

Abstract: "Out of the recent popularity of downloadable contents (DLC) among video game manufac- turers has resurfaced the issue of versioning of informatio n goods. The central idea behind the zero-day DLC strategy is that consumers who find the base v ersion of a game to be suffi- ciently attractive would pay a premium to upgrade by purchas ing such a DLC. In this work, we combine the literature on versioning with that on product sampling to model the impact of consumer learning on the product-line strategy of a game m anufacturer. In doing so, we demonstrate that a manufacturer's desire to vertically diff erentiate could actually stem from a horizontal separation among consumers. When consumers diff er in their perception of the fit between their tastes and the features of the product, horizo ntal differentiation seems a natural choice. However, if the manufacturer is unable to classify p otential consumers into groups with distinct tastes, horizontal differentiation becomes impra ctical. We find that, interestingly, this inability to differentiate horizontally does not limit the m anufacturer from vertically positioning its product line. We characterize the conditions under whic h the DLC strategy is effective and discuss how it affects consumer and social welfare. Our resul ts also have obvious implications in markets for other digital experience goods."

Abstract: "The video game industry is a billion dollar industry with an ever-growing fan base. Massachusetts, along with other states, has begun to take an interest in further developing this dynamic industry. A problem facing many policy makers and economic developers is accurately defining the video game industry, determining the types of workers that form of human capital within its workforce and where these businesses are located. This study helps to solve this problem by converting video game credits, found in all video games, into Standard Occupational Codes to identify the types of workers who comprise the industry and by conducting spatial analysis using Public Use Microdata Samples (PUMS). It also uses the Occupational Information Network to evaluate what forms of human capital comprises the video game industry. The results show the video game workforce comprises both creative workers such as artists and musicians, but also computer programmers, engineers, and business management and marketing professionals. This workforce tends to be concentrated not only in larger U.S. metropolitan areas but also in regions with a significant high-technology workforce, college towns, and government laboratories. Also, as this diverse workforce contains a wide variety of skills and abilities, a common theme is being able to work together as a team to develop a product. This study is part of a growing body of research and initiatives to identify and to locate new, creative industries within metropolitan regions. This research will contribute to future research using occupational analysis to identify new and growing industries."