The Gruter Institute Working Papers on Law, Economics, and Evolutionary Biology Volume 2, Issue 1 2001 Article 1 Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier Edward Castronova∗ ∗Cal State Fullerton,
[email protected] Copyright c 2001 by the authors. All rights reserved. No part of this publication may be re- produced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher, bepress, which has been given certain exclusive rights by the author. The Gruter Insti- tute Working Papers on Law, Economics, and Evolutionary Biology is one of The Gruter Institute Working Papers on Law, Economics, and Evolutionary Biology, produced by The Berkeley Elec- tronic Press (bepress). http://www.bepress.com/giwp. Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier Edward Castronova Abstract In March 1999, a small number of Californians discovered a new world called “Norrath”, populated by an exotic but industrious people. Having just returned from a dangerous exploratory journey through this new world, I can report a number of interesting findings about its people and economy. About 12,000 people call it their permanent home, although some 60,000 are present there at any given time. The nominal hourly wage is about $3.42 per hour, and the labors of the people produce a GNP per capita somewhere between that of Russia and Bulgaria. A unit of Norrath’s currency is traded on exchange markets at $0.0107, higher than the Yen and the Lira.