Digital Economy

Mobile games are getting a lot of attention as a content-based sector of the digital economy. Especially considering "Free with In-App Purchase" as the mainstream business model of these games, designing the right economic structure to monetize the content of mobile games is crucial. However, there is limited knowledge about the mechanisms of persuading users to pay for in-game content and most of the studies are merely focused on the revenue models. Due to this knowledge gap, this study attempts to aggregate the game monetization methods into a multi-level classification and focus on identifying the main content monetization mechanics of five genres: Arcade, Sport, Puzzle, Racing, and Platformer/ Runner. For this purpose, interviews were conducted by game design and economics experts about successful mobile games. As a result, a new multi-level classification for mobile games revenue models is proposed which includes monetization via selling core items, selling performance items, and providing supplementary services in addition to retailing and in-game advertising. It also became clear that monetization mechanics for each of these methods vary in different genres and change depending on the type of game. The results of this study can be useful for digital game researchers, designers, and marketeers to structure a better revenue stream.

The integration of the internet with digital games has catalyzed significant transformations in the production, distribution, and consumption within the gaming industry. A notable catalyst in this evolution is the advent of live-streaming platforms, particularly Twitch. This study employs qualitative meta-analysis to scrutinize 19 scientific studies, aiming to synthesize a comprehensive interpretation of Twitch's role and influence in the digital gaming arena. Our analysis reveals Twitch's multifaceted impact: it is a driving force in the digital economy, facilitating new job creation, diverse revenue streams for industry participants, and a fertile ground for innovation and ideation. Twitch has revolutionized the landscape for game designers, producers, and developers, fostering independence and enhancing the quality and quantity of independent game productions. Moreover, it extends the lifespan of games in the market, resurrects interest in older titles, and assists consumers in making informed purchasing decisions. Importantly, Twitch serves as an educational platform, offering insights into specialized gaming industry skills, including design and programming. These roles and functions position Twitch as a pivotal player in the dynamic and burgeoning digital gaming industry.

Purpose: This research aimed to identify some of the existing financial frictions in the Iran's digital economy. In particular, based on cases taken from digital and knowledge-based companies, it empirically investigated the importance of the role of base volume in the liquidity of those companies' stocks in Tehran Stock Exchange.Method: To evaluate the empirical implications of applying the base volume in daily stock market practice, retrospectively a quantitative estimate of the base volume was implied by the economic model within the rules imposed by the market regulator via MATLAB software programming. Then, using the Generalized Method of Moments (GMM), the effects of the estimated base volume, percentage of free-floating share, securities turnover, and the ratio of transaction volume to base volume on Amihud index were econometrically studied for the selected companies during the period 2015-2020.Findings: The findings indicate that the applying base volume on the selected digital and knowledge-based companies has had a negative effect on the calculation of the final price and on the liquidity of studied knowledge-based companies. Also, the results of using the machine learning method (decision tree) showed a importance coefficient of 32.6% for the base volume on the Amihud index of the selected companies.Conclusion: Our results suggest that base volume as an idiosyncratic financial friction induced by Iranian stock market regulator has aggravated the illiquidity of studied digital and knowledge-based companies and thereby could have raised the financing costs for those companies. This would ultimately impede those companies’ growth prospect.