Pamuru says the research will contribute to the field of economics of information systems by establishing the theoretical connections between the AR technology and consumer economics behavior.Ī few months after Pamuru ’s research began circulating, Krannert finance professors Mara Faccio, the Hanna Chair in Entrepreneurship, and John McConnell, the Burton D. However, there was no significant difference in terms of the perception of customers between restaurants with PokéStops nearby and those without. Pamuru and his colleagues found that restaurants near PokéStops - real-world locations where players can collect Poké Balls and related game items - observed higher online activity compared to restaurants that do not have PokéStops nearby. “The setting was a straightforward choice because not all businesses have PokéStops near them.” “Using data collected from a leading online review site for food businesses, we employ difference-in-difference methodology to answer the question,” Pamuru says. The researchers considered restaurants as the representative set of businesses and used online reviews as the proxy measure for footfall and quality perception. “We wanted to explore if virtual world incentives are strong enough to create business implications in the real-world.” “As an AR-based game, Pokémon Go incentivizes users to move around in the physical world and visit PokéStops as they play,” Pamuru says. It was coauthored by Karthik Kannan, Purdue’s Thomas Howatt Chaired Professor in Management and Warut Khern-am-nuai, who earned both his master’s and doctoral degrees at Purdue’s Krannert School and is now an assistant professor at McGill University’s Desautels Faculty of Management. The first study, titled “ The Impact of an Augmented Reality Game on Local Businesses: A Study of Pokémon Go on Restaurants,” originated with Krannert PhD student Vandith Pamuru, who was recognized for his work at the school’s 2017 PhD Research Symposium. But how does that balance with the economic costs of playing the game while driving, which include an increased number of vehicular accidents, injuries and even death? It’s now at the top of the menu in an industry that generates more than $1 billion in annual revenues.Īccording to a pair of working papers from Purdue University’s Krannert School of Management, tech companies aren’t the only businesses getting a taste of the profits. history with more than 20 million active users daily.
When the augmented reality (AR) game Pokémon Go made its debut in 2016, it quickly became the most popular mobile game in U.S. The Pokémon Paradox Krannert researchers examine the costs and benefits of popular game
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