A Cautious Approach to Public Policy and Loot Box Regulation

Addictive Behaviors, Forthcoming

3 Pages Posted: 4 Oct 2019

See all articles by Matthew McCaffrey

Matthew McCaffrey

University of Manchester - Manchester Business School

Date Written: September 1, 2019

Abstract

Researchers are making progress toward determining some of the psychological implications of video game loot boxes, yet the literature still has a long way to go before it can provide a sound basis for policy recommendations. Despite this limitation, however, early studies of loot boxes and addictive behavior frequently suggest some form of loot box regulation, including by public authorities. I suggest that these proposals are premature, as they do not take account of several fundamental economic challenges facing policymakers. A more cautious approach that takes account of costs and unintended consequences is recommended as a complement to ongoing research.

Keywords: Loot boxes, microtransactions, economics, psychology, public policy

JEL Classification: D04, D91, I18, L38, L53, L86, M38, O33, O38, Z11, Z18

Suggested Citation

McCaffrey, Matthew, A Cautious Approach to Public Policy and Loot Box Regulation (September 1, 2019). Addictive Behaviors, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3458397

Matthew McCaffrey (Contact Author)

University of Manchester - Manchester Business School ( email )

United Kingdom

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