Despite the sizable market for online games, research on the economics of online game operations remains nascent. In this paper, we focus on free-to-play player-versus-player games in which the game provider offers players an option to purchase game-specific virtual goods (items) before the game...

Channel rebates and returns policies are common mechanisms for manufacturers to entice retailers to increase their order quantities and sales ultimately. However, when the underlying demand depends on the retail price, it has been known that channel coordination cannot be achieved if only one of...