The stability of a virtual economic system

An online game allows players to earn virtual currency and to collect, sell and buy online prizes, in effect creating a self©contained virtual economy. There are indications that virtual gaming economies generate currency instabilities, increases in prices, and the accumulation of large virtual wealth holdings by some players. Such distortions can threaten the sustainability of the economy and the entertainment value for players. The project with Backstage Technologies Inc., a software company that creates games for social networks, seeks to characterize and analyze one such virtual game economy and propose methods to ensure its stability.

Faculty Supervisor:

Dr. Graham Voss

Student:

Erica Zhou

Partner:

Backstage Technologies Inc.

Discipline:

Economics

Sector:

Finance, insurance and business

University:

University of Victoria