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The current model of revenue generation for some free to play video games is preventing the companies controlling them from growing, but with a few changes in approach these issues could be alleviated. A new style of video games, called a MOBA (Massive Online Battle Arena) has emerged in the past few years bringing with it a new style of generating wealth. Contrary to past gaming models, where users must either purchase the game outright, view advertisements, or purchase items to gain a competitive advantage, MOBAs require no payment of any kind. These are free to play computer games that provides users with all the tools necessary to compete with anyone free of charge; no advantages can be purchased in this game. This leaves the only way for users to provide money to the company through optional purchases of purely aesthetic items, only to be purchased if the buyer wishes to see their character in a different set of attire. The genre’s best in show—called League of Legends, or LOL—has spearheaded this method of revenue-generation. Fortunately for LOL, its level of popularity has reached levels never seen in video games: the world championships had more viewers than game 7 of the NBA Finals (Dorsey). The player base alone is enough to keep the company afloat currently, but the fact that they only convert 3.75% of the players into revenue is alarming. Each player brings the company an average of $1.32, or 30% of what some other free to play games earn per user (Comparing MMO). It is this low per player income that has caused Riot Games, the developer of LOL, to state that their e-sports division is not currently profitable. To resolve this issue, LOL must take on a more aggressive marketing plan. Advertisements for the NBA Finals cost $460,000 for 30 seconds, and LOL should aim for ads in this range (Lombardo). With an average of 3 million people logged on at any time, 90% of the players being male and 85% being between the ages of 16 and 30, advertising via this game would appeal to many companies, making a deal easy to strike (LOL infographic 2012). The idea also appeals to players: 81% of players surveyed said that an advertisement on the client that allows for the option to place an order would improve or not impact their experience. Moving forward with this, the gaming client would be updated to contain both an option to order pizza and an advertisement for Mountain Dew. This type of advertising was determined based on community responses through a sequence of survey questions. These small adjustments to the game would allow LOL to generate enough income for Riot Games to expand into other areas of the e-sports industry.
ContributorsSeip, Patrick (Co-author) / Zhao, BoNing (Co-author) / Kashiwagi, Dean (Thesis director) / Kashiwagi, Jacob (Committee member) / Barrett, The Honors College (Contributor) / Sandra Day O'Connor College of Law (Contributor) / Department of Economics (Contributor) / Department of Supply Chain Management (Contributor)
Created2015-05
Description
A growing number of jobs in the US require a college degree or technical education, and the wage difference between jobs requiring a high school diploma and a college education has increased to over $17,000 per year. Enrollment levels in postsecondary education have been rising for at least the past decade, and this paper attempts to tease out how much of the increasing enrollment is due to changes in the demand by companies for workers. A Bartik Instrument, which is a measure of local area labor demand, for each county in the US was constructed from 2007 to 2014, and using multivariate linear regression the effect of changing labor demand on local postsecondary education enrollment rates was examined. A small positive effect was found, but the effect size in relation to the total change in enrollment levels was diminutive. From the start to the end of the recession (2007 to 2010), Bartik Instrument calculated unemployment increased from 5.3% nationally to 8.2%. This level of labor demand contraction would lead to a 0.42% increase in enrollment between 2008 and 2011. The true enrollment increase over this period was 7.6%, so the model calculated 5.5% of the enrollment increase was based on the changes in labor demand.
ContributorsHerder, Daniel Steven (Author) / Dillon, Eleanor (Thesis director) / Schoellman, Todd (Committee member) / Economics Program in CLAS (Contributor) / Department of Psychology (Contributor) / Sandra Day O'Connor College of Law (Contributor) / School of Politics and Global Studies (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
Through collection of survey data on the characteristics of college debaters, disparities in participation and success for women and racial and ethnic minorities are measured. This study then uses econometric tools to assess whether there is an in-group judging bias in college debate that systematically disadvantages female and minority participants. Debate is used as a testing ground for competing economic theories of taste-based and statistical discrimination, applied to a higher education context. The study finds persistent disparities in participation and success for female participants. Judges are more likely to vote for debaters who share their gender. There is also a significant disparity in the participation of racial and ethnic minority debaters and judges, as well as female judges.
ContributorsVered, Michelle Nicole (Author) / Silverman, Daniel (Thesis director) / Symonds, Adam (Committee member) / Dillon, Eleanor (Committee member) / Barrett, The Honors College (Contributor) / Economics Program in CLAS (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / School of Politics and Global Studies (Contributor)
Created2014-12
Description
With the National Labor Relations Board's decision to allow Northwestern University football players to unionize, the landscape of college athletics is changing very quickly. Due to their recognition as employees of the University, football players at Northwestern will receive many benefits that they would not have received before. They will be able to bargain for the things they want including: scholarships that cover the cost of attendance, increased medical coverage, measures to increase graduation rates, a safer game, and due process with the NCAA. However, this will come at a cost to the general welfare. Subsidies to athletic departments will continue to rise on college campuses due to the increasing costs of athletics and that cost will be incurred regressively on students. With an outcry from students, universities may be forced to stop the increase in subsidies, which may force some athletic departments to cut certain sports according to some parameters set by government legislation and the NCAA.
ContributorsGewecke, Alexander Leland (Author) / Marburger, Daniel (Thesis director) / Dillon, Eleanor (Committee member) / Barrett, The Honors College (Contributor) / Department of Economics (Contributor) / W. P. Carey School of Business (Contributor)
Created2015-05
Description
My thesis offers original research is in its direct analysis of the IRS conflict of interest regulations and their applicability to STOs, its discussion of my experience setting up an STO, and my interviews of State Legislators as a primary source. The primary goals of my investigation are to 1. Determine the regulations and standards that exist to prevent conflicts of interest in the operation of Arizona STOs. 2. Examine instances of alleged conflicts of interest encountered by STO operators. 3. Discuss the ethical implications of STO operator actions in situations of conflicts of interest. And 4. Propose legislative solutions to remove any and all conflicts of interest. From my examination of financial records and from my interviews with other state legislators, I have concluded that Arizona Christina School Tuition Organization is violating IRS regulations by operating with an objective of conferring on its director a private benefit. The STO I helped form, ------------- STO will need to carefully document its expenses and contracts to justify its overhead margin or else risk running afoul of the same IRS regulations. Even if an STO like ------------- STO, is allowed by Arizona law to have an overhead margin of 10%, those expenses must be justified, particularly if they confer a private benefit to restricted persons. Ultimately, even if an STO deliberately flouts IRS regulations regarding private benefits realized by "disqualified" persons, it is highly unlikely that the STO will face IRS scrutiny. Therefore, there exist sufficient federal regulatory safeguards to prevent financial conflicts of interest among Arizona STO board members, but such regulations are not sufficiently enforced to prevent those conflicts of interest.
ContributorsGunther, Nicholas (Author) / Koretz, Lora (Thesis director) / Bonfiglio, Thomas (Committee member) / Sandra Day O'Connor College of Law (Contributor) / W.P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
The NBA operates under a unique system with both forms of the salary cap. The league has a team salary cap that sets a limit that teams can spend on their entire roster. The NBA has a soft cap and a luxury tax system, meaning if teams spend over a determined amount, they are taxed for the salaries in excess. The league also has a player salary cap. The 1999 NBA collective bargaining agreement first introduced the individual player salary cap in the league. This cap sets a limit on what the best players can earn, otherwise known as the maximum contract. In an economic system with a soft team cap, the introduction of the player salary cap has important implications. The stated outcome of such a salary cap is to improve competitive balance and better distribute star players throughout the league. This study evaluated the 1990-2015 regular seasons to measure the impact of the player salary cap on competitive balance, the distribution of team payrolls, and the dispersion of star players. In accordance with the Rottenberg's invariance hypothesis, the player salary cap has hurt the players and benefited the owners by redistributing income from one party to the other, without impacting the distribution of talent in the league. The rule change has not affected competitive balance, while team payrolls have converged and star players have become more dispersed throughout the league. These changes hurt the league overall, preventing the maximization of revenues. Despite this inefficiency, the chance of the league moving to eliminate the player salary cap is low.
ContributorsWelu, Brian Andrew (Author) / Marburger, Daniel (Thesis director) / Goegan, Brian (Committee member) / Sandra Day O'Connor College of Law (Contributor) / Department of Economics (Contributor) / School of Historical, Philosophical and Religious Studies (Contributor) / W. P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
Description
Upon hiring a new college graduate, employers are left with limited information about the true productivity of the individual, mainly based on the information provided via resume and other related documents. Based on the information, which may include (and is not limited to) education years, grade point average(s), the institution one attended, majors, etc., employers attempt to differentiate between the candidates. Existing employer learning literature, such as Altonji and Pierret (2001) and Peter Arcidiacono, Patrick Bayer, and Aurel Hizmo (2010), have found that employers statistically discriminate upon hiring and estimate wages based on expected productivity conditional to observable characteristics--specifically education. As one's work experience accumulates, the wages are adjusted to the newly learned characteristics correlated with productivity. Thus, college graduates are more appealing as job candidates than high school graduates, with little learning done with experience in the labor market as employers have a more accurate depiction on productivity with more education years. With rising demands for high-skilled labor, there is a growing interest on what employers learn about from the name of the college listed on one's resume, as varying ability students sort into varying quality colleges. I include a one-dimensional index of college quality, as similarly constructed by Eleanor Dillon and Jeffrey Smith (2015), to measure the effects of attending a highly-selective institution in predicting individual ability. This paper provides additional support for the employer learning model on college graduates, with an emphasis on the direct role that college quality has at the start of one's career. Although college quality appears to be influential in providing employers additional information on one's productivity, unlike education, the weight placed on it by employers does not change with experience in the labor market. I further investigate within the college market and provide possible explanations behind learning on the basis of college quality, including: the possibility of information explained by quality unrelated to one's ability and the effects of attending a highly selective college.
ContributorsNam, Jimin (Author) / Veramendi, Gregory (Thesis director) / Dillon, Eleanor (Committee member) / School of Mathematical and Statistical Sciences (Contributor) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
There is growing public concern about the implications of climate change for natural processes, such as the melting of ice at the poles, but less clear are the implications for food production. Famine and conflict have a long and complicated history, made increasingly complicated by the intricate global food system. In this paper, I explore the effect of increasingly severe El Niño Southern Oscillation cycles on conflict in an effort to determine how abnormal climate patterns affect food security and, indirectly, conflict. I use a non-linear probit model to analyze the relationship between several binary conflict variables and food supply.
ContributorsWoner, Hannah Marie (Author) / Schoellman, Todd (Thesis director) / Ripley, Charles (Committee member) / Sandra Day O'Connor College of Law (Contributor) / Economics Program in CLAS (Contributor) / School of Politics and Global Studies (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12