Interview w/Edward Castronova

scubacuda writes "/.ers interested in the recent editorial on real $ in MMORPGs might also be interested in a GrepLaw interview I just conducted with Edward Castranova (expert witness in the recent Black Hat Hacker Court) about how his work on synthetic economies affects larger law and policy issues on the Internet. Ted has some interesting thoughts, particularly how online game-based economics (Star Wars Galaxies, EverQuest, Lineage, etc.) will eventually serve as the bases for "real governments." Should mainstream economics journals take his work on gender and virtual economies seriously, Ted promises to eat his virtual hat."

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Wikipedia entry on synthetic economies

[scubacuda]

From Wikipedia:

Synthetic economies perform useful resource-allocation and entertainment roles within MUDs. They also interact with the Earth economy. US dollar markets for synthetic-economy goods, currency, and services may be observed at online auction sites such as Ebay (search "Ultima Online", or "DAoC" for Dark Age of Camelot) and PlayerAuctions.com (search "EQ" for EverQuest).

According to standard conceptions of economic value (see the subjective theory of value), the goods and services of synthetic economies are endowed with real value. The value of a good is determined by its users, and is measured by their willingness to give up resources to obtain it. MUD users are willing to devote both time and Earth currency to obtaining synthetic goods, making these digital assets as real as any assets on Earth.