Will Virtual Economies Affect Real-World Economics?

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."

Comments

Re:One positive aspect

[bj8rn]

I wonder how Marx's or von Mises' writings would have been affected if they'd had MMO simulators to play with?

The Capital would have never been written, as Marx would have spent all the time playing Everquest.