Users' understandings of the virtual economy in social virtual worlds: consumption and entrepreneurship of virtual goods

Social virtual worlds (SVWs) such as Second Life have gained immense popularity during the last decade. Their popularity is reflected in the explosive growth of the in-world economy, which is mainly supported by users’ consumption of virtual goods and entrepreneurial behavior. Users’ economic behavior has increased the size of the virtual economy to reach over $1B in the United States in 2009 (Nicholson 2009). Given that virtual consumption and entrepreneurship have become an important part of everyday virtual life in SVWs, understanding these two types of economic activities is an essential aspect to understanding user behavior in SVWs. This research aims at investigating the meanings of virtual consumption and entrepreneurship for users. The research consists of two independent essays. In the first essay about virtual consumption, I examine users’ understandings of virtual consumption through core-periphery analysis of its social representation. 154 Second Life users participated in the web-based survey for this study. I also identify user goals for virtual consumption by using means-end chain analysis, based on interviews with 93 Second Life users. The second essay on the topic of virtual entrepreneurship examines the collective meanings of virtual entrepreneurship and their relationship with the collective meanings of SVWs. To understand the meanings of virtual entrepreneurship, the core-periphery structure of social representations of virtual entrepreneurship is analyzed, based on interviews with 24 Second Life entrepreneurs. The meanings of virtual entrepreneurship are explained and compared with the central meanings of SVWs, identified from 101 newspaper articles on SVWs from 2005 to 2009. The results show that virtual consumption penetrates extensively into the virtual life of users and make their virtual experience in SVWs much richer; that virtual entrepreneurship is institutionalized in SVWs, and the key meanings of SVWs are well translated into the meanings of virtual entrepreneurship. This research contributes in providing fundamental knowledge about virtual consumption and entrepreneurship and further suggests potential theoretical frameworks for future research. Implications for SVW service providers and producers and sellers of virtual goods are also identified. Another contribution of the research is to demonstrate alternative qualitative research approaches combined with quantitative analyses.

Name thesis:degree_name

Doctor of Philosophy (PhD)

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Business

Grantor

Information Systems and Decision Sciences (Business Administration)

Year dc:date.available

2010

Author dc:creator

• Jung, Yoonhyuk

• virtual economy
• social representation theory
• social virtual worlds

Statement dc:rights

• unrestricted
• Release the entire work immediately for access worldwide.

Identifier

etd-04092010-154422
https://repository.lsu.edu/gradschool_dissertations/1017

OAI identifier oai:identifier

oai:repository.lsu.edu:gradschool_dissertations-2016