Charging in Online Gaming: The Role of Time Preference and Present Bias

Abstract

‘Charging’ in gaming means spending real money to purchase in-game property. This paper investigates consumer behavior concerning charging in online gaming from the perspective of time preferences and present biases. I will show the following three results. (1) Time preference rate does not affect charging. (2) The degree of present bias has a positive effect on charging behavior. (3) Naive consumers tend to be charged more often in online gaming.