1. Platform Loophole Exploitation, Recovery Measures, and User Engagement: A Quasi-Natural Experiment in Online Gaming.
- Author
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Chen, Jianqing, He, Shu, and Yang, Xue
- Subjects
VIDEO game consoles ,ONLINE shopping ,VIDEO games ,VIRTUAL communities ,ECONOMIC impact - Abstract
Online platforms often encounter the challenge of system vulnerabilities, such as bugs, which can be exploited by certain users for illicit gains. These platforms face a dilemma when devising countermeasures, particularly in deciding whether to penalize rule breakers. Different countermeasures can lead to varying economic impacts, including subsequent user engagement. In this study, based on unique field data from a prominent online gaming platform, we discovered that the occurrence of bugs has a negative effect on the online duration and consumption of observing players. Surprisingly, although the platform is responsible for the bugs, not penalizing rule breakers results in more substantial reductions in platform engagement among observing players compared with penalizing them. This effect is particularly pronounced for observers who are directly affected by rule violations. Our findings emphasize the essential role of the platform in fairly punishing rule breakers. To ensure the long-term prosperity of an online platform and the overall welfare of its participants, it is crucial for the platform to maintain high-quality system control and implement effective governance mechanisms for rule enforcement, thereby restoring justice and order to the online community. Online gaming platforms are inevitably subject to system loopholes such as bugs. Some players may take advantage of these bugs to gain benefits illegitimately, being viewed as rule breakers by platforms. Online platforms face a dilemma between disciplining rule breakers with the risk of being perceived as unfair to the rule breakers—because rule breaches are, after all, caused by the game software's technical glitches and belong to a "gray area"—and not disciplining rule breakers with the risk of being perceived as unfair to the observers. Different recovery measures may result in significantly different economic impacts. In this study, we use the unique field data of an online gaming platform to examine the effects of players' rule-breach behavior due to system bugs and the platform's different recovery measures on players' subsequent engagement. Using various empirical models, we find that the occurrence of bugs negatively impacts the observing players' in-game online duration and consumption. Surprisingly, although the platform is responsible for the bugs, not punishing rule breakers leads to even larger reductions in observing players' platform engagement than punishing them. We thus suggest that the primary driver of the engagement reduction is the platform's inappropriate recovery measure, rather than the bugs, and call online platforms' attention to designing effective rules and recovery measures under the situation of a rule breach. Our findings enrich the literature and theories concerning the relationships between online platform loophole exploitation, associated recovery measures, and sustained user engagement. History: Wonseok Oh, Senior Editor; David (Jingjun) Xu, Associate Editor. Funding: X. Yang acknowledges the financial support by the National Natural Science Foundation of China (NSFC) [72272075, 71872086], Nanjing University Special Program for Middle and Long Term Outstanding Research in New Era Humanities and Social Sciences [14914220], and Nanjing University Special Program for Young Faculty in Interdisciplinary Humanities and Social Sciences [14370115]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2020.0416. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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