1. Virtual Economies Scott Woodward Chris Addy

2. Economies Economy refers to the human activities related with the production, distribution, exchange, and consumption of goods and services A virtual economy is an economy existing in a virtual persistent world, usually in the context of a game

3. Virtual Economies Consist of 5 parts –Persistence –Scarcity –Specialization –Trade –Property Rights

4. Persistence The software keeps track of –State of the world –Resources –Possessions

5. Scarcity Users must expend resources –Time –Real money –Virtual money and resources To obtain goods, resources, or services in the virtual environment

6. Specialization Availability to players of the resources must vary –Limit players ability to obtain resources based either upon skills, class, or other factors –This creates conflict in the environment for available resources

7. Trade Users must be able to transfer goods and services to and from other users –Virtual objects only have meaning in context of the game –Worthless if unable to trade goods between players and the environment

8. Property Rights The world must record which goods and services belong to which user identity –The user may dispose of the goods or services according to whim at any time via destruction, exchange or use.

9. Types of Games and Their Economies –RTS –TBS –RPG –FPS –Board Games (Monopoly etc) –MMO inflation

10. Meaningful Play Discernable outcome –In most games you need resources to accomplish goals –The resources come into your hands through the economy in the game Integrated outcome –By interacting with the economy you obtain resources that will further your own goals further down the road

11. Lusory Attitude Virtual economies with regards to lusory attitude can vary greatly –In some games you spend resources readily to accomplish a goal such as building an army –In other cases you come to value the money in the same manner as real money due to the work required to obtain it

12. Virtual Economies in the News Online vendors sell currency, services or items in many online games –World of Warcraft –Everquest I & II –Second Life EBay bans the selling of virtual goods and servicesbans Virtual Taxation