TY  - RPRT
        AU  - Gandhi, Ashvin
AU  - Giuliano, Paola
AU  - Guan, Eric
AU  - Keefer, Quinn
AU  - McDonald, Chase
AU  - Pagel, Michaela
AU  - Tasoff, Joshua
        TI  - Beliefs That Entertain
        PY  - 2024/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16877
        UR  - https://www.iza.org/index.php/publications/dp16877
        AB  - Economic research on entertainment is scant despite its large share of time use. We test economic theories of belief-based utility in the context of video-game engagement. Using data on 2.8 million matches from League of Legends, we find evidence supporting reference-dependent preferences, loss aversion, preferences for surprise and suspense, preferences for clumped surprise, and flow theory from psychology. We then leverage our estimated model and an evolutionary algorithm to find the information-revealing process that maximizes player engagement. We find that the optimal version of the game has increased game play equivalent to 43% of the winner-loser gap.
        KW  - belief-based utility
KW  - reference-dependent utility
KW  - suspense and surprise
KW  - loss aversion
KW  - video games
KW  - entertainment design
        ER  -