It's available on SSRN . Search 'castronova' and take your pick. Or go here.
One thing: EverQuest's GDP PER CAPITA is bigger than India's. I don't why people keep reporting it as 'EverQuest's GDP is bigger than India's.' It isn't. That would be absurd. PER CAPITA. {sigh}.
I've been working on this idea for some time. Anyone seriously interested in supporting an effort to build a public use virtual world for research purposes - give me a shout. Castronova
I would love to learn more about how these worlds can be decentralized. If any of you have a minute to deliver the basic idea, please post at the blog (Terra Nova) or contact me at
ecastronovaNO@SPAMfullerton.edu
Thanks!
Edward Castronova
is accepted by 99 percent of the economics profession as the right way to talk about the importance of goods and services. It holds that items have value to the extent that individuals, interacting in markets, give them value. It is the answer to the diamond-water paradox: diamonds are useless and expensive, water is precious and cheap. Because value comes from the people, not the objects, diamonds really are more valuable than water.
Therefore, Shadowbane assets have real value. It's not just a game.
I recommend the Lastowka and Hunter paper. For the specific economic numbers, search 'castronova' at www.ssrn.com.
Cheers, Edward Castronova
ok, im glad to see everyone debating the definition of GNP. "anyone?....ferris? gnp? anyone?..."
in concept, GNP is about the creation of value in an economy. the actual book definition involves the market value of newly-created final goods and services. the problem in EQ is that the producer and the final user are the same person, and there is no market transaction. but does that mean nothing of value is created? no. and we can estimate the value of new things based on what price they currently command in some market.
it doesnt matter if only a small fraction of items or characters are bought and sold at one time. right now, the buying and selling of GM stock gives it a certain price, even though the stocks being traded are a small fraction of all the stocks outstanding. if everyone sold their GM stock, sure, its price would be zero. so what price do we use to valuate the stock of GM? the market price now, or the price of zero?
see, you have to focus on the creation of value. if i add a level to a character, and that adds $15 to the price someone would be willing to pay for it, then i have added $15 to the total value of goods and services in the world. if GM invents a new car that will add to profits, and that makes the stock price rise, then the TOTAL value of GM stock rises, doesn't it?
(for more on valuation, go re-read the sections on consumer surplus in your micro econ text.)
and im sorry if this is all misleading. its a new area, many real-world definitions are not clearly and immediately applicable. but thanks all for the thoughtful comments, they really help.
edward castronova
ps also sorry at the repeated posts about the study, people keep seeing it somewhere and sending it in.
Slashdot Mirror
It's available on SSRN . Search 'castronova' and take your pick. Or go here. One thing: EverQuest's GDP PER CAPITA is bigger than India's. I don't why people keep reporting it as 'EverQuest's GDP is bigger than India's.' It isn't. That would be absurd. PER CAPITA. {sigh}.
I've been working on this idea for some time. Anyone seriously interested in supporting an effort to build a public use virtual world for research purposes - give me a shout. Castronova
I would love to learn more about how these worlds can be decentralized. If any of you have a minute to deliver the basic idea, please post at the blog (Terra Nova) or contact me at ecastronovaNO@SPAMfullerton.edu Thanks! Edward Castronova
is accepted by 99 percent of the economics profession as the right way to talk about the importance of goods and services. It holds that items have value to the extent that individuals, interacting in markets, give them value. It is the answer to the diamond-water paradox: diamonds are useless and expensive, water is precious and cheap. Because value comes from the people, not the objects, diamonds really are more valuable than water. Therefore, Shadowbane assets have real value. It's not just a game. I recommend the Lastowka and Hunter paper. For the specific economic numbers, search 'castronova' at www.ssrn.com. Cheers, Edward Castronova
ok, im glad to see everyone debating the definition of GNP. "anyone?....ferris? gnp? anyone?..." in concept, GNP is about the creation of value in an economy. the actual book definition involves the market value of newly-created final goods and services. the problem in EQ is that the producer and the final user are the same person, and there is no market transaction. but does that mean nothing of value is created? no. and we can estimate the value of new things based on what price they currently command in some market. it doesnt matter if only a small fraction of items or characters are bought and sold at one time. right now, the buying and selling of GM stock gives it a certain price, even though the stocks being traded are a small fraction of all the stocks outstanding. if everyone sold their GM stock, sure, its price would be zero. so what price do we use to valuate the stock of GM? the market price now, or the price of zero? see, you have to focus on the creation of value. if i add a level to a character, and that adds $15 to the price someone would be willing to pay for it, then i have added $15 to the total value of goods and services in the world. if GM invents a new car that will add to profits, and that makes the stock price rise, then the TOTAL value of GM stock rises, doesn't it? (for more on valuation, go re-read the sections on consumer surplus in your micro econ text.) and im sorry if this is all misleading. its a new area, many real-world definitions are not clearly and immediately applicable. but thanks all for the thoughtful comments, they really help. edward castronova ps also sorry at the repeated posts about the study, people keep seeing it somewhere and sending it in.