http://papers.ssrn.com/sol3/papers.cfm?abstract_id=294828
I don’t expect anyone else to read this entire document.
This is an early look at the emerging economics of Virtual Worlds. The author uses Norrath as his site of study and presents some interesting facts. He also provides a good definition for a location having an economy: any distinct territory with a labor force, a GNP, and a floating FX rate, has an economy.
1. The exchange of PP to dollars occurs in a highly liquid, illegal market. Its value exceeds that if the JP Yen and IT Lira. (in 2001)
2. A competition for time has arisen between Earth and VWs. For many people Earth is the less desirable option.
3. Each avatar develops a social role by becoming a specialized agent. The avatar’s class determines what items it will supply and demand. This includes asocial players
4. Many people spend more time in-game than they do working.
5. It is possible, with the .0125 $/PP exchange rate, to maintain a living above the poverty line. In 2001 the poverty line for 1 person was around 9000 a year. He says that the average wage was around $3.42 an hour in-game.
6. Norrath’s real-world GNP in 2001 made it the 77th richest country. Imagine where WoW stands.
This is a study of one game, but the principles, assumptions, and findings are far-reaching. They can be applied to MMO’s today. Studies like this will foster understanding of how societies and economies evolve. The beauty of an MMO is that each time a game is released the society and economy start from scratch. The interaction between virtual and real world is becoming more important each day.
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2 comments:
I find it fascinating that virtual worlds are being compared to (and now treated as, like in EVE) "real-world" countries. Seeing a virtual world's currency value exceed a real world country's makes me wonder if, things move to an extreme, that living in a game's virtual world may be a better life (financially) than living outside the game.
One of the questions in his survey was if people would quit their jobs to work in-game if they made more money. 22% said "yes."
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