Will Virtual Economies Affect Real-World Economics? 38
Thanks to Game Studies for their Edward Castronova-authored article discussing the economics of massively multiplayer games, which asks the question: "Will these economies grow in importance? Second, if they do grow, how will that affect real-world economies and governments?" It's suggested that "the mere fact that Earth economies may suffer as people spend more time in cyberspace does not imply that humanity is worse off", as "the basket of produced goods is simply changing." Finally, some of the unique economic facets to virtual worlds are pointed out: "Economics, on Earth, argues that no wise government will try to control prices. In an avatar economy, however, the government can effortlessly peg many prices at any value."
Fixing Prices (Score:5, Insightful)
Re:Fixing Prices (Score:2)
How can a virtual economy be hurt?
Re:Fixing Prices (Score:3, Insightful)
The originally planned in-game economy becomes useless for meaningful trade, and the 'real' game economy is
Re:Fixing Prices (Score:2, Insightful)
"Hey look I got this cool, rare xxxx!"
"Oh yah? I got it too"
"So do I"
and eventually its not so "cool" anymore.
Hm.. perhaps this explains why fads and clothing styles don't hang around very long
"Wise" Being the key word (Score:5, Interesting)
Real, unwise governments institute price controls all of the time with devastating effect. Witness how the US healthcare industry is reacting to price ceilings instituted via insurance and government health programs and how the oil markets reacted to Nixon's attempts to curb inflation in the 1970's.
Re:"Wise" Being the key word (Score:5, Informative)
Daniel
Re:"Wise" Being the key word (Score:1)
Whether it's milk, gasoline, housing, electricity or any other commodity, price controls are a lousy idea.
They don't need to be imposed by governments either. Look at the chilling effects that Wal-Mart has had on consumer manufacturing or Big Agribusiness has had on food supplies and farmers.
Re:"Wise" Being the key word (Score:3, Insightful)
Re:"Wise" Being the key word (Score:2, Informative)
Re:"Wise" Being the key word (Score:2)
Re:"Wise" Being the key word (Score:1)
Not true. Wrong on many counts.
First, commodity type care (routine checkups) is relatively cheap. There's no reason to think it won't stay that way. Where costs get out of hand is in specialty care. In particular, end of life care is incredibly expensive. Demand is not price inelastic. See, demand isn't just 'I want it', demand is 'I want it for this much, and I can pay for it'
Humm. (Score:1, Flamebait)
Meme exchange (Score:3, Interesting)
One positive aspect (Score:5, Interesting)
Re:One positive aspect (Score:3, Funny)
The Capital would have never been written, as Marx would have spent all the time playing Everquest.
Re:One positive aspect (Score:2)
Games are based on and support the capitalist principle that your risk and effort can return a commesurate reward.
Re:One positive aspect (Score:2)
So do I, but imho Atlas Shrugged [barnesandnoble.com] settled that issue long before MMO sims came along.
(Be kind, people; my Nomex underwear [saferacer.com] is in the wash.)
I do acknowledge the possibility that some as-yet-uninvented variation or hybridization of Marxism might prove viable in the real world. I think it highly unlikely, but who knows what a powerful socioeconomic sim coupled to, say, an equally powerful genetic algorithm engine might come up with
Re:One positive aspect (Score:2)
Re:One positive aspect (Score:1)
Already happening (Score:1, Insightful)
Re:Already happening (Score:1)
Fucking economists (Score:2, Offtopic)
The mere fact that the economy may suffer as SCO spends more time producing lawsuits does not imply that humanity is worse off, as the basket of produced goods is simply changing.
Re:Fucking economists (Score:2)
Here's a clue... People can't always produce. People need downtime to be creative. People need downtime to allow their muscles to rebuild and their minds to re-uptake neurotransmitters. If they weren't playing videogames t
See-Saw -ing between the real and virtual. (Score:4, Informative)
I think mostly existing tools were used beyond what they are generally designed for - i.e. expanded into a virtual world. The thing on which it is applied is different but the tools and approaches used are not.
When I see two words "value" and "worlds" so close to each other the thought that jumps to my head is world of religion and its value. Do we have one religion ? Does the size matter when you can choose yours ? Does one religion dominate the world ?
Don't know if there is such a correlation beween the two, because it is hard to pin down what "higher rewards" and "challenge levels" are. Firstly, how can you be sure that the coder has captured the "reward" or "challenge" value in a pattern of numbers ? And secondly, regarding preferences, it is well known that one man's cake is another man's poision. One way to visualize it is to see a see-saw in motion.
I guess what it could mean is that if you find that you have committed a sin in your religion, it is then not a bad idea to shop around for another religion that doesn't consider it a sin - if the analogy made with religion is appropriate.
Now it sounds quite like religion to me. I can just imagine the power structures you described and those described in religious history.
Well it depends on how you visualize the function of its growth. If it is linear or quadratic, then you probably could be right. If the function is of a higher order the growth of digital stock might find a limiting value, or even reverse itself. It usually happens when currencies of differnt nations are allowed to partially or freely float agains the currencies of other nations. And hopefully if that could be predicted, then it might be comparable to the accomplishments of George Soros - who broke the Bank of England.
Has anyone pointed out... (Score:4, Interesting)
Re:Has anyone pointed out... (Score:3)
Reporting Virtual Earnings to Real Tax Authorities (Score:4, Interesting)
The extent that virtual economies let "players" perform virtual jobs and earn virtual money that can be used to buy valuable products and services is the extent such virtual income is taxable. If enough players earn more money online than they pay in monthly fees, then said players are effectively gainfully employeed and profitable. If the virtual money is exchangable for real money, then it becomes much more likely that the IRS could get interested.
Hmmm... do virtual earnings count as earnings in foreign country?
Re:Reporting Virtual Earnings to Real Tax Authorit (Score:1)
The Tax Collector has entered the room.
<1000/1000hp 400/400mp 600/600mv 10000 gold>
The Tax Collector hits at you with an IRS form!
You lose 9900 pieces of gold.
<1000/1000hp 400/400mp 600/600mv 100 gold>
The Tax Collector leaves to the north.
Skill based trades in MMORPGs (Score:1)
I'm wondering though... don't some games have skill based trades? How will Kraginlor's +5 Armorsmithy hold out against online manufacturing outfits when selling stuff on ebay? I recall an article about some guys who had min wage workers playing Everquest or something like that to gain items to sell online. How about automated equipment factories run by computers playing games so the owners can post items for s
Maybe I'm just misunderstanding, but... (Score:1)
I've played a number of online RPGs, and there's really nothing that can be done to control prices within the game short of putting item sale and trading and such in NPC hands.
I'll use the example of a game I used to play called Dransik. Several of the game's servers have had years of gold buildup in the player base, leading to virtual hyperinflation. When I first started playing, the best items in the game w
Inflation and Delfation in MMORPGs (Score:2)
What you are describing is sometimes called "Mudflation" - in essense money can become worthless in muds (MMORPGs). It is a topic of discussion in Everquest.
This will happen if there is nothing worth buying with you money, or if money is so easy to obtain that it becomes worthless.
To have any sembelance of a real economy, game designers must make it really tough to get actual cash. They have to fix any exploits promptly. This requires lots of work.
Further, there must be some money or item s