Event-Driven Economic Behavior in Virtual Economies: Evidence from Hypixel Skyblock

Abstract

This study investigates how consumer economic behavior changes in response to short-term, event-driven conditions, taking the “Season of Jerry” event in the virtual economy of Hypixel Skyblock as its focus. The research tracks spending, saving, and investment choices across four distinct phases: pre-event, immediate pre-event, event, and post-event, spanning December 1 to December 25, 2024. Six randomly selected players provided daily records of their financial activity in-game, which were then examined to identify recurring patterns and trends. The analysis shows that players who favored balanced strategies, built around reinvestment and the use of passive income methods, generally achieved more consistent and profitable results. By contrast, those who leaned heavily on speculative approaches or short-term consumption often experienced losses. Several real-world economic concepts could be observed in action within this virtual setting, including prospect theory, bounded rationality, and the sunk cost effect. While the modest sample size and the limitations of a game-based context make broad generalization difficult, the results suggest that virtual economies can serve as valuable environments for studying consumer behavior. They may also provide insights that are useful to educators, economists, and digital platform designers who are interested in decision-making under temporary shocks.