One fundamental economic challenge in social gaming is how to monetize players. We address this problem from the lens of social influence. Specifically, we examine how players’ paying behaviors in a social game are associated with their pure friends and Simmelian-tie friends. Analyzing a comprehensive social game dataset provided by Tencent.com, we find that the cohesion effect emanating from players’ direct connections in the social gaming network exhibits positive impacts on players’ willingness to pay. Surprisingly, the cohesion effect of pure friends is found to be significantly stronger than that of Simmelian-tie friends, contrary to the common findings in the literature. These new findings have direct implications for companies tasked with designing social games or gamification systems and, more broadly, to help better understand the mechanism behind the microscopic economic behavior of individuals in a virtual economy.

Understanding the antecedents and consequences of electronic word-of-mouth (eWOM) is of significant theoretical value and great interest to both consumers and firms. To reconcile the disagreement in the relationship between eWOM and product sales, we investigate the joint effect of different dimensions of eWOM on the sales of durable goods (i.e., cars). Our study is based on eWOM collected from Autohome, a leading online review platform of automobiles in China. Our empirical results show that the volume and valence of eWOM positively affect car sales, and variance negatively affects car sales when the volume of eWOM is low. Further analyses of the joint effect show that the positive impact of eWOM volume on sales is stronger when the valence is lower and the variance is higher. This research contributes to the literature on eWOM and provides helpful suggestions for firms by shedding light on the joint effect of different dimensions of eWOM in the context of the Chinese automobile industry.