An Empirical Study of the Effects of Virtual Currency on Learners in Out of Class Practicing

Abstract

As a gamification element, virtual currency (VC) stands for rewards that can be exchanged for virtual or real goods. While some forms of reward-based gamification have been studied extensively, the exploration of the impact of VC on learners is relatively scarce. In particular, there is a lack of studies investigating its effects in different learning contexts. Since VC can evoke perception of benefits with positive impact on course outcomes, it may be experienced as an extrinsic incentive. On the other hand, VC can promote internalized motivation when awarded for accomplishment of certain challenges. To bridge this gap we are conducting a longitudinal study on the impact of VC on student motivation and engagement in different contexts and with different types of learners. The goal of this paper is to empirically investigate whether and how VC can improve the engagement in out-of-class practicing of a certain population of learners in a gamified Discrete Structures course. The study demonstrated a strong positive impact of VC on learners’ engagement however VC exhibited no significant impact on students’ academic performance and intrinsic motivation.