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Posted By admin on January 4, 2010
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Virtual Economic theory describetion by Erik Leib
Economic theory is based on the concept of full market competition, unfortunately, ideal conditions for economic activity bypass us in the real world.
Nevertheless, in the virtual world, many fragile features auto show: the market without any resistance, everyone has the same basic properties can participate in any economic activity within the game to go (cultivation, manufacture, trade, etc.) ; most games in the factors of production have a high degree of mobility (if you can engage in manufacturing, then you are in any place, any time, without any money on the investment, can be manufactured); products with the same (all treatment medicine are the same; all of the Scorpion Harness is custom carved out of a mold); scale production is also consistent (no matter how much syrup you manufacture, the production cost per bottle is still the same).
This means that the core theory of economics, those who supply, demand, marginal revenue, etc., can be applied directly to the appropriate MMORPG virtual economy. The key point is – we will see, the virtual backbone of economic theory – how to market the game is designed around the concept of perfect information.
Complete information refers to all producers and consumers are aware of all the price and quality. On the quality of goods, the majority of games players are to provide accurate information. In the “World of Warcraft”, the mouse over items, items that can pop up all the relevant statistical properties. This sword than the sword right?
Players have all the necessary assessment information. Material quality, brand or other of its value in determining the factors beyond the actual performance (other than aesthetic aspects of the purchase decision) do not need to be considered. Who made, who sold you will not be any difference: the same items each time. Then the problem is that players know the price of goods.
As we all know, the price of goods is the buyer how much money will buy it. However, the value of goods is its opportunity cost: the cost to obtain that item. In the MMORPG game, players fixed “pay” and “price” is the time: the cost of herbs is to spend 10 minutes picking its time.
To calculate the value of time, players only need to determine in a specific period of time they can do something: If within 10 minutes, you can picking a herb, 5 or 10 gold ore, then the value of 10 minutes is an herb, 5 ore, 10 gold. MMORPG Most items are able to get time on the basis of cost, because most of the items for the process is the passage of time.
Rare monster of an hour only once and only 5% drop rate of items, the opportunity cost of about 20 hours. The problem as it relates to probability, the actual cost paid by the player would change: some people will “pay” a lot of time but never get over it; while others encounter a monster in order to obtain a small price items.
In any case, if the player in time to measure the value of goods, then they can decide how a reasonable use of their time. Continue our previous example, if the market on 5-for-5 gold ore can, then you buy the best gold mining ore, rather than their own. This is inside the “best” is the other side of perfect competition: each player should be the pursuit of profit maximization by.
However, players do not need to maximize profits. Basically, players play games for fun, this “fun” can not be discounted in the virtual economy. If the exploitation of five get 10 gold ore than the much more interesting, players may choose their own mining rather than buy it, simply because they found the virtual activities more enjoyable, despite the economic output is not so profitable.
This search for interesting behavior disturbed the market order: For example, if a large number of players willing to mining, ore market conditions will become a glut, because both players and try to sell it to mine – and not many players want to buy it.
This example raises a key point: the ore is not due to deflation in the value of goods due to oversupply, but because the suppliers of emission caused. Not because of the presence of a large number of ore resulting in low prices so simple, but because of the mining and minerals on the players on the market far more than the purchase of its players.
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About the Author
What makes the MMO game economies ticking? This article describes the different types of games and real-world economic theory to explain the value market of the player management systems, and how to design economic systems to better serve For players and developers.
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