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Reward Prediction Error in Online Game Trades

Author

Listed:
  • Christoph Safferling

    (Institut für Betriebswirtschaftslehre, Universität Wien, Austria)

Abstract
We use trade data from an online game economy to test the 'dopaminergic reward prediction error' (DRPE) hypothesis: upon buying a game item at a price which is obviously too low, a player should become more active in the trading market. We find that players are more willing to buy goods in the in-game market after such an trade incident. Hence, the effect predicted by the DRPE model is visible. Yet, contrary to the prediction of DRPE, the magnitude of the prediction error does not have any effect on the post-error trading activity.

Suggested Citation

  • Christoph Safferling, 2011. "Reward Prediction Error in Online Game Trades," Working Paper Series of the Department of Economics, University of Konstanz 2011-31, Department of Economics, University of Konstanz.
    • Handle: RePEc:knz:dpteco:1131
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    File URL: http://www.uni-konstanz.de/FuF/wiwi/workingpaperseries/WP_31-11-Safferling(trading).pdf
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    More about this item

    JEL classification:

    • C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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