The development of theoretical framework for in-app purchasing for the gaming industry

Sandhya Krishnan, Barath Kumar Balu, Stephen Smith, Vincent Pang

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contributionpeer-review


The gaming industry is a multi-billion dollar business has evolved from video arcade games in the 1970s/80s to video game consoles and online games in the 1990s/2000s. Today, games can be played on smart phones and tablets which are initially offered for free. They make money later by offering inapp upgrades which promises to enhance the gaming experience. When a gamer engages in this purchase, the term used is in-app purchasing. Normally, a frequent gamer is interested to buy upgrades. For this, a game company must understand the needs and wants of a gamer, and design an intelligent game system which gathers and process information about the behaviour of a gamer when he/she interacts (plays) with it. The game system will suggest a list of in-app(s) which are priced according to the effectiveness for the gamer to upgrade. This research-in-progress paper presents a theoretical framework to study in-app purchasing. The In-App Purchasing Theoretical Framework is backed by Behavioural Game Theory, which is to examine gamer's behaviour, and Theory of Consumption Values, which identify the game's values which are gained from his/her gaming experience.

Original languageEnglish
Title of host publicationPACIS 2015
Subtitle of host publicationProceedings of the 2015 Pacific Asia Conference on Information Systems
Place of PublicationAtlanta, GA
PublisherAssociation for Information Systems
Number of pages8
Publication statusPublished - 2015
EventPacific Asia Conference on Information Systems (19th : 2015) - Singapore, Singapore
Duration: 5 Jul 20159 Jul 2015
Conference number: 19th


ConferencePacific Asia Conference on Information Systems (19th : 2015)
Abbreviated titlePACIS 2015


  • Behavioural Game Theory
  • Theory of Consumption Values
  • Mobile
  • In-App Purchasing
  • Gaming Industry

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