Loss Aversion and the Crackdown 2 Demo

One of the first articles I wrote for this site was about how to use loss aversion to get people to buy Xbox Live Arcade or Playstation Network games. The idea was that during the demo for the game you award people achievements or trophies, then threaten to take them away unless they buy the…

APB: All Points Bulletin or Aggregated Payment Bias? Both.

Back in April of this year, Realtime Worlds announced the pricing model for its soon to be released MMO, All Points Bulletin, or “APB” as the cool kids say. A lot of people were looking forward to the futuristic cops vs. robbers game, but the announcement about the pricing elicited jeers from a lot of…

Framing and World of Warcraft’s Rest System

One of my favorite things about human psychology is how a punishment can be turned into a reward just by changing the way it’s framed. A few years ago a friend of mine was serving on the board for a large conference and negotiating a contract with the hotel where the event would take place.…

Conan the Loss Averse Barbarian

I wrote just the other day about how loss aversion could be used to increase conversion rates on trial games. You can read that article for more details and a neat experiment illustrating the effect, but the gist of it is that people hate to lose things more than they like to gain them. Losing…

Loss Aversion, Achievements, and Trial Conversions

How could publishers get way more people to buy an Xbox Live Arcade or Playstation Network game after trying the trial version? Let me glue on my goatee and practice my maniacal laugh a few times and then I’ll tell you my idea. But first, let me ask you a couple of hypothetical questions made…