Money supply and inflation in virtual economies : creating the appropriate tools for virtual economic management in collaboration with NARC Ltd.
type: CreativeWork
description: Virtual worlds represent economies that are based on scarce digital resources. Some of the largest and most complex virtual worlds that we interact with are a part of the genre of massively multiplayer online video games (MMO). Several MMO game developers have had to tackle with the issue of inflation brought about by an expanding supply of their in-game currency. NARC Ltd. is a game development studio that wishes to prepare for this eventuality by creating useful and effective tools for the management of price levels. This formed the basis of our research question: For the purposes of developing a massively multiplayer online video game, what are the appropriate tools for measuring, managing and maintaining a digital in-game economy, in particular regarding money supply and inflation? Our analysis identified models that allow for the measurement of total output, velocity of money, virtual consumer price indices, virtual production functions and real money trading arbitrage.
abstract: Virtual worlds represent economies that are based on scarce digital resources. Some of the largest and most complex virtual worlds that we interact with are a part of the genre of massively multiplayer online video games (MMO). Several MMO game developers have had to tackle with the issue of inflation brought about by an expanding supply of their in-game currency. NARC Ltd. is a game development studio that wishes to prepare for this eventuality by creating useful and effective tools for the management of price levels. This formed the basis of our research question: For the purposes of developing a massively multiplayer online video game, what are the appropriate tools for measuring, managing and maintaining a digital in-game economy, in particular regarding money supply and inflation? Our analysis identified models that allow for the measurement of total output, velocity of money, virtual consumer price indices, virtual production functions and real money trading arbitrage.
author: Benedikt Aron Þórólfsson 1997-
author: Davíð Andersson 2001-
language: en
keywords: Hagfræði og fjármál, Sýndarveruleiki, Tölvuleikir, Verðlag, Economics and finance, Virtual reality, Prices
date published: 2023-05-17T13:42:22Z
date modified: 2026-07-27T20:36:15Z
provider: Reykjavík University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Reykjavík University

PropertyValue
property ID: Handle
value: http://hdl.handle.net/1946/44328