Virtual goods are non-physical objects that are purchased with real money for use in online
communities, virtual worlds, or games and fulfill a functional or decorative purpose in an online
environment. Virtual goods are typically priced from $1 to $3, but can be sold for much higher prices
depending on scarcity, functionality, and design. Virtual goods include weapons or tools that help
players progress in a game, decorative items like avatar gear or profile themes that allow users to
express their individuality, and virtual gifts that enhance communication between friends and family.
Perhaps most importantly, virtual goods also act as social badges that, depending on the social context,
can convey a level of status, achievement or acceptance similar to that associated with ownership of
real status symbols.!