In this Book

summary
In the twenty-first-century digital world, virtual goods are sold for real money. Digital game players happily pay for avatars, power-ups, and other game items. But behind every virtual sale, there is a virtual economy, simple or complex. In this book, Vili Lehdonvirta and Edward Castronova introduce the basic concepts of economics into the game developer's and game designer's toolkits. Lehdonvirta and Castronova explain how the fundamentals of economics -- markets, institutions, and money -- can be used to create or analyze economies based on artificially scarce virtual goods. They focus on virtual economies in digital games, but also touch on serious digital currencies such as Bitcoin as well as virtual economies that emerge in social media around points, likes, and followers. The theoretical emphasis is on elementary microeconomic theory, with some discussion of behavioral economics, macroeconomics, sociology of consumption, and other social science theories relevant to economic behavior. Topics include the rational choice model of economic decision making; information goods versus virtual goods; supply, demand, and market equilibrium; monopoly power; setting prices; and externalities. The book will enable developers and designers to create and maintain successful virtual economies, introduce social scientists and policy makers to the power of virtual economies, and provide a useful guide to economic fundamentals for students in other disciplines.

Table of Contents

  1. Cover
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  1. Title Page, Copyright Page
  2. pp. i-vi
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  1. Contents
  2. pp. vii-ix
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  1. Acknowledgments
  2. pp. xi-xii
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  1. 1 Introduction
  2. pp. 1-22
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  1. 2 Theories of Human Behavior
  2. pp. 23-40
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  1. 3 Goods: Material, Digital, Virtual
  2. pp. 41-56
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  1. 4 Supply and Demand
  2. pp. 57-82
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  1. 5 Regulating Markets
  2. pp. 83-100
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  1. 6 Market Power and Pricing
  2. pp. 101-120
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  1. 7 Methods of Exchange
  2. pp. 121-136
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  1. 8 Externalities and Secondary Market Trade
  2. pp. 137-154
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  1. 9 Institutions and Nonmarket Allocation
  2. pp. 155-176
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  1. 10 Money
  2. pp. 177-196
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  1. 11 Macroeconomic Design
  2. pp. 197-214
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  1. 12 Macroeconomic Management
  2. pp. 215-246
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  1. 13 Policymaking
  2. pp. 247-260
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  1. 14 Why the Real World Needs Virtual Economy Design
  2. pp. 261-272
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  1. References
  2. pp. 273-280
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  1. Index
  2. pp. 281-294
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Additional Information

ISBN
9780262323314
Related ISBN
9780262027250
MARC Record
OCLC
966768944
Pages
312
Launched on MUSE
2017-01-01
Language
English
Open Access
No
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