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Enter at Your Own Rift: How gold farming really hurts the economy
Recently, Trion Worlds CCO and RIFT Executive Producer Scott Hartsman talked to Gamasutra about how gold farming is a much bigger threat than we assume, particularly because of the large amount of credit card fraud. Those who played RIFT at launch probably recall the large wave of hacked accounts early on. According to Hartsman, the hacking attempts were so quick and so intense that the game could have been "denial-of-serviced off the internet" when it launched. As I was browsing the Auctioneer the other day, I was reminded of Scott's statement because gold farming has sucked a lot of the fun out of in-game economies in virtual worlds. Markets early on were lively, unpredictable, exciting, and full of freedom but very vulnerable because of the growing illegal trade of in-game currency for real money. In an effort to combat the rising real-life value of gold, games like RIFT have moved away from gold toward a system of non-tradeable tokens. But while these tokens have helped to curb the value of gold and reduce the demand for third-party RMTs, they've also removed a lot of the freedom from players. After the cut, we'll take a closer look at how exactly that's happened and why it hurts the economy.
EVE Evolved: EVE Online's not-so-free market
One of the most talked-about features of EVE Online is its player-run economy. Due to over 330,000 players living on one server, the markets have reached a critical mass where the laws of economics play out in a very effective manner. When there's a demand for something, no matter how obscure the item or low the demand, you can be sure there are dozens or hundreds of pilots trying their best to supply it. The in-game economy mirrors real-life economic situations so closely that CCP even hired a dedicated economist to analyse the market and advise CCP of any problems that arise. EVE's economy is often referred to as a pure free market, but that isn't technically true. At its heart, EVE is still a game designed and implemented by a team of developers. All MMO economies require some degree of control and intervention for the game to remain playable. In EVE, this comes in the form of careful balance of supply and demand via changes to game mechanics and drop rates. There are also a number of more direct passive influences on the market, such as NPC market orders and insurance. In this economic article, I look at a few of the influences that constrain free-market economics in EVE.
The gold standard: A WoW economics course proposal
If you're like me, you're ... well, you're probably incredibly handsome and charming. But you're also probably interested in WoW's economy, given that it's the biggest and most involved metagame in WoW and a fascinating microcosm of a free-market economy.I personally think that the how and why of WoW's economy is worth a deep look, and it appears there are a lot of people who agree with me--even some academics. It might even be worth just as much as any other book-learnin'.At least, that's the basis of David Friedman's World of Warcraft economics course proposal. Friedman is an academic economist from San Jose, CA who's assembled this article as a think-tank for what a WoW economics course would entail if you had to fill it with a semester's worth of content. There's a lot of neat stuff in here, talking about relative prices of ore based on character level and rarity of ore and supply/demand, but he also asks for your input as to possible course material, which I'm sure you could gladly provide in the comments section of his page.Good idea with sound academic basis, or another in the long list of high falootin' academia's attempts to justify playing WoW on the government's dime? WE REPORT. YOU DECIDE.
Buyer beware in the Auction House
After a player complains that they mistakenly paid 75g for wool cloth in the Auction House, Drysc confirms that Blizzard is all about caveat emptor: the auction house market is all about open trade, so if you buy something for the wrong price, it's all on you.This, of course, leaves the system fairly open to rampant fraud -- I know someone on another server who would often buy anything epic on the AH, day in and day out, and inflate the price an extra thousand gold. In many cases, the free market (which I'm pretty sure this is, right economists?) can usually correct itself -- you have to stay on top of a certain market if you plan to dominate it, since if anyone posts a lower price than you, you'll lose out on a sale. But in terms of a fraud -- the original poster in the thread claims that no one would ever have a serious reason to sell wool for 75g -- it's always "be careful what you click." Blizzard isn't completely laissez-faire when it comes to the economy, of course; they control the flow of gold in all kinds of ways. But when it comes to the auction house, you're on your own.
