This article analyzes the business ethics of digital games, using Ayn Rand’s philosophy of Objectivism. It identifies different types of monetization options as virtuous or nonvirtuous, based on Rand’s views on rational self-interest. It divides the options into ethical Mover and unethical Looter designs, presents those logics in relation to an illustrative case example, Zynga, and then discusses a view on the role of players in relation to game monetization designs. Through our analysis of monetization options in the context of (...) Objectivist ethics, the article contributes to discussions on game revenue ethics. It also expands the still understudied area of applying Rand’s ethics to business, in the context of a new sector, game development, and business. This research enables ethicists to apply a wider-than-before perspective on virtue ethics to online business, and helps game developers act in a virtuous manner, which provides them with a long-term business advantage. (shrink)

Considering recent theoretical discussions about the concept of moral legitimacy, this study advances our understanding of its performance consequences. Specifically, it uncovers the mediating role of moral legitimacy in the relationship between regulations and industry performance. Our analysis of the U.S. state-level data on regulations in a controversial industry between 1994 and 2010 yields four significant findings. The results show that regulations not only decrease performance but also negatively impact moral legitimacy. Moreover, this study provides empirical evidence that moral legitimacy (...) is positively related to industry performance, providing much-needed direct support for this premise. Importantly, the results indicate that moral legitimacy mediates the effect of regulations on performance, but only when regulations are aligned with moral values. Overall, this study extends our understanding of how regulations influence moral legitimacy, and in turn impact industry performance. (shrink)