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:"Wise" Being the key word (Score:3, Insightful)
Already happening (Score:1, Insightful)
Re:Fixing Prices (Score:3, Insightful)
The originally planned in-game economy becomes useless for meaningful trade, and the 'real' game economy is conducted via eBay or primitive bartering. Where of course it's difficult for the operators of the virtual world to perform any regulatory functions.
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. Forget implications to the virtual world.. its really just a mirror of ourselves.