CEU eTD Collection In partial In G L VIRTUAL ITEMS OLD EGITIMACY Supervisors: fulfilment Department of Sociology and SocialAnthropology and Department Sociology of R USH

of the requirements for the degree of Master Artsfor of the degree of the requirements

: Central European University Central European INFORMAL SECTOR

C Mihai IN OLLECTIVE NEGOTIATIO

Budapest, Hungary Budapest, REALMONEY TRADING Submitted to Submitted AS - Alexandru Alexandru

2013 PARTTHEOF By

prof p rof Ilioaia

. .

Andreas Dafinger Andreas Jean

-

Louis Fabiani Louis GLOBAL N

OF

OF

CEU eTD Collection VI. V. IV. III. II. I. Table ofContents

Reactionsand Legit Informality Real & Game,Immersion the& Magic Circle Virtual L READING THE MAP PLANNING THE EXPEDIT THE PROPHECY FORETOL ConstantNegotiations The Small “Time is Money” Victimsand Perpetrators IDENTIFYING THE ARTE A HERO’SA RETURN FINDING THE HIDDEN C ife and theQuestion of“Realness” - Farm Model

...... - World Economics imacy Building -

LITERATURE REVIEW –

......

CONCLUSIONS FACT ION

...... D HEST

-

......

INTRODUCTION - -

DEFINITION, HISTORY EMPIRICAL FINDINGS A -

DATA ACCESS AND METH

......

......

......

......

...... 2

......

...... AND IMPORTANCE ND ND ANALYSIS ...... ODOLOGY ......

......

......

......

39 36 33 30 27 25 23 19 13 10 .

8 8 6 5

CEU eTD Collection collective levels. rather is constant being and but forms many taking spread, few, select a of dominion the being at restricted not is it that and first the connected. this from arise that tensions the and self with have disparities economic world physical and money that as well as sector, informal uneasy the explore to interviewsof means by field, the gatheredin findings empirical the and theory ludic regarding theories of use makes paper real money trading money real The discussion regarding the the regarding discussion The Abstract

The paper will show how, despite hot despite how, show will paper The

, that the practice is much more internalized than one would assume at at assume would one than internalized more much is practice the that , contact and showing how the two are actually intimately intimately actually are two the how showing and contact el oe trading money real ly negotiated by players, both at individual and individual at both players, by negotiated ly 3

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of virtual items contained in this this in contained items virtual of - ssive discourses against discourses ssive contained game worlds game contained

relation relation - wide wide CEU eTD Collection have very inbetween.everywhere end and t of inch every at help my in perpetually my raise standards. who and scientific, it be support, of beacon bright a represented beyond and year made notjust possible Last, but not least, I am forever in debt to the elusive Puffincat, who Puffincat, elusive the to debt in forever am I least, not but Last, grateful ever am I is project This Acknowledgments , with his trademark charm and sharpness and charm trademark his with , greatly owed to Professor Jean Professor to owed greatly of

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has co has decision to apply at this institution, this at apply to decision - Louis Fabiani, who, during the entire entire the during who, Fabiani, Louis nstantly urged me to improve and to to and improve to me urged nstantly emica career as whole. moral or otherwise otherwise or moral se

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CEU eTD Collection the questions oflegitimacy both touching while ground, theoretical firm in analysis my and fieldwork my both anchor the and economies digital specificallywith regarding theories of use making review, literature a out lay will I Subsequently, existence. very its real hav that conditionshistorical the trackssegmentthat short apractice, the for definition of the theveryhandsat ofprofit. ofplay idea ga the into intrusion an as not perceived being practice the this, to related intimately is game the outside and inside both meets it opposition the that and gold real that is make to try will I argument main experien is labour informal urban that digital the towards to trying as well the waythe on focus will I versa. that transactions focus industry diffused and lax unregulated, victory thoseconsideras who they over ruining game. the characters, of players several - I. - money trading the bourgeoning industry that it is today, as well as the factors that d that factors the as well as today, is it that industry bourgeoning the trading money farming in particular should be seen and researched as part of the global informal sector sector informal global the of part as researched and seen be should particular in farming

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CEU eTD Collection MMORPGs. today‘s of forms archaic extremely games, pla mid instance reported oldest the but games, video physical purpos sole the for game o is ―gold‖ that fact the farming‖ ―gold appearanceof the with ‗00s early ‗90s, late the during noteworthy become only has it but itself, gaming online with simultaneously less or Playing Role Online Multiplayer Massive persistent exclusively, not but mainly, games, video online around and in place taking transactions to refer to used usually is it fields, multiple covers sometimes definition that a in place take that services or currency , virtual the of up made obviously, conclusions t be, will coda The follow, chapter. theoretical to the is to data linked the strongly of analysis An subject. the regarding discussions for forums and on involved actors with also but general, in gamers, online with industry said of legitimacy the regarding interviews yers‘ items yers‘ II. - 80s (Hunter, 2006) (Hunter, 80s

Accounts conflict on the exact date when date exact the on conflict Accounts trading money Real Furthermore, - world money. Importance EXPEDITION THE PLANNING hat sofar the work are hinting towards. or character character or wl rsn the present will I

, where players would use real money to pay in exchange for other other for exchange in pay to money real use would players where , both nly the currency in a couple of games of couple a in currency the nly e of gathering virtual currency, with the end the with currency, virtual gathering of e

while playing Multi User Dungeons User Multi playing while

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real money trading money real - worlds of the MUDs were not persistent, but would be wiped and and wiped be would but persistent, not were MUDs the of worlds - world MMORPGs like , or Lineage. It Lineage. or Online Ultima 59, Meridian like MMORPGs world certain, less fun, less certain, . A classic, perfect system of demand and offer formed, with with formed, offer and demand of system perfect classic, A . - East Asian player, X sum of money was was money of sum X player, Asian East Around 2001 the model started to adapt to the global the to adapt to started model the 2001 Around

was restricted purely to purely restricted was parts - 7 to

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in in - CEU eTD Collection game playful, the on up following one encountering, my in approaches theoretical to therefore, decided, have I large. at society of projection it treat to presumptuous even and dismissive as be would it time, off from separate completely void, a in exist not does community it in place take that relations the treat to difficult is it have, ―Azeroth‖ Warcraft‘s of World as such worlds virtual that Virtual and Life the aloneChina andmarket dollars in2007. a of2.1billion total that 2005 in estimating Times York New with place, m the far by goes tothe it of cents 37 only gold, virtual buying on spent dollar every for So USD. 66 for gold 1000 same that sell They USD. 25 for gold 1000 buy will ―they where business a operating up, set fr a for gold mining shifts, sweat places up set in Entrepreneurs organizations. hierarchical of that fro moving centralized, more and more III. cle ―od am‖ (e, 2006b) (Yee, farms‖, ―gold called ,

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actual goldactual (Yee, farmers.‖ 2006) READING THE MAP streamlining s pplr MRG vr created ever MMORPG popular ost Q uestion of “ of act the process the process of explaining of process ion of the sum it was worth and websites like IGE were being being were IGE like websites and worth was it sum the of ion –

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follow two main, rather broad, broad, rather main, two follow - to

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CEU eTD Collection 19) 1938: (Huizinga, it.‖ by gained be can profit no and interest, material no with connected activity ―an as game the describes also he Furthermore, but, play, considered be cannot it 8) 1938: (Huizinga, necessity‖, ―physical by dictated or task a as it does or so, do to ordered is one because plays one when that and 7) 1938: (Huizinga, activity‖ voluntary manner. harsher a in with dealt consequently, is, and separation of illusion the dispelling amusement, circle magic in an gain may she or he that so game the of rules ―spoil a and cheater a between distinction interesting highly a makes Huizinga this, of support In life. ordinary from free and independent world game the keeps what being rules the of obedience and world. games,online caseof specific the in or, 10) 1938: (Huizinga, arena; the of or stage the of edge the as such limit, physical actual an be can it times at but players, the by on agreed limit, invisible an usually alt an of creation the allowing thus circle‖, ―magica by life ordinary the from separated be must it and rules of obligatoryset an have must it exist to game a for that proposes he where theory, play on work (1938) Huizinga‘s Johan of use th do to attempt my In norms. social other from differently negotiated game a of rules the are waywhat in and existence verygame‘s the of breacha constitutes what itself, Game, Immersion & t

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, the latter completely transgresses the rules, out of malice or towards one‘s own own one‘s towards or malice of out rules, the transgresses completely latter the , - sport‖ (Huizinga, 1938: 11). While the former is simply bending the the bending simply is former the While 11). 1938: (Huizinga, sport‖ ―it could at best be but a forcible imitation of it‖. (Huizinga, 1938: 7) 1938: (Huizinga, it‖. of imitation forcible a but be best at could ―it he Magic Circle the log the - in screen that one has to pass through in order to reach the play reachthe orderto pass throughin to has onescreen that in

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CEU eTD Collection doing are transactions the show, will arguments future my as but statements, broad such making It Calleja is referringsolely tosingle if (Calleja, isunclear 2007:27) th of rules the where area the between limit and 2008) the (Calleja, transgress to inability the myth‖ citing by games video ―binary of era the in redundancy a its announcing it considering games, video on use its to regards core the criticising Calleja Gordon as such them, s games video to related phenomena discuss to theory Huizinga‘s off a well as world, gaming the within advantage an achieve to game the of outside exist that resources uses it that fact the through circle magic the of breach a being same action hours has one when shattered it that agency the is particular in RPGs online and general gamesin video accou empirical by and 2007) (Dibbell, Dibbell by both mentioned as entertainment, pure as use they which having also farmers gold many planes, 2007) wh even game, the from had be to fun still is there that declare and gamers as themselves see still farmers gold that prove accounts othe the On nature. sacral its fouling play, the into duties and seriousness necessities the in bringing by world, game the into transgression clear a as them see would and players, being as farmers gold online consider not would Huizinga - ie rft uig in using profit, line

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n n o te ot aos ok o te atr Ewr Csrnv dsrbs the describes Castronova Edward matter, the on books famous most the of one In t tried have Juul Jesper primarily authors, Other –

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12

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and that ―young people are also disproportionately disproportionately also are people ―young that and Using as game companies trying to get directly into the the into directly get to trying companies game as 13 tc o ifra eooy r ―l are economy informal of stics

Keith Hart‘s 1973 seminal work that coined coined that work seminal 1973 Hart‘s Keith where , - intensive methods of production and and production of methods intensive on of informal economy, through through economy, informal of on n cn meitl se how see immediately can one he many ways in which the the which in ways many he Ln Sn 21: 335) 2011: Sun, & (Lin real money trading money real

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CEU eTD Collection the buyer andmore the theseller, (Yee, 2006), Keepin mmo website comparison price by shown as servers, States United for dollars 40 and 27 and website and allegiance server, by conditioned variations with servers, European 20,000 in it place to attempt to and phenomenon interme Stat United the to Mexico Taiwan; markets important ignored. be to large too markets internal developed have to seem su gap wealth disproportionate a and population high a with countries counterexample, a as However, resources. the tap to skills internet and computer the have or concept the with familiar be to likely less be also farming gold from most the benefit would ( illiteracy, digital regarding matters the as well as 37), 2008: (Heeks, market internal an keeping is this exi to opportunities, unlikely employment formal of lack as well as poor, very the and rich very the between gap income huge a has that one in especially economy, same the within exist a stayedhave would and the i in income, remained have as would practice well as availability, and standards labour of terms in discrepancies huge flouris even and survive to managed g in mind that the intermediary websites receive quite a large chunk of the payment the of chunk large a quite receive websites intermediary the that mind in g hs at ln ceis h ncsiy o ok at look to necessity the credits alone fact This the that said be also should It diated by websites such as IGEdiated suchas by websites or MMOKings. ol o Wrrf gl i Jn 2013 June in gold Warcraft of World it stands to reason that the wider the income and labour opportunity gap and opportunity theincome labour between wider reason that the standsto it st on a large scale. This is This scale. large a on st , however, remain however, ,

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CEU eTD Collection a has seller the and income high a has buyer the when beneficial mutuallyonly is scheme the of skill kind what on leveller the instructingowner the with cases, most in people onlytwo to limited process, the mediate obviously companies larger and websites While ―marke considered be cannot This themselves. character the growing of process tiresome the through go to wish don‘t but build, character different a try to want levels, high at play usually who characters, several money. of amount certain newly a power of case the in clearer even becomes process. outsourcing informal an by driven being as practice the can we and process the to inherent less becoming are necessary as claims Heeks that preconditions where 14) 2008: (Heeks, staff‖ two or one just with enterprises small between done is subcontracting the of most market, the of nature secretive and volatile the consider to are we if and occasions several purchase gold and ― that and absent‖ be may trust risk; justify to sufficient pr its of some because difficult ― that claiming matter, the on considerations his expand to tries Heeks Richard much, too subject (Weir, outsourcing of form a being as Asia South predominantly countries, developing towards players Western the from money f o a hoeia prpcie otorig n h gold the in outsourcing perspective, theoretical a rom

Due to the fact that most of the gold farmers are situated in South in situated are farmers gold the of most that fact the to Due of flow broader the identify academia, outside from especially authors, some While decisions take to through course the the of - formed game character to another, who is bringing that character up to top level for aforleveltop to up bringingcharacter that is another,who to charactergame formed - ‖ (Heeks, 2008: 38) Be that as it may, he uses the term for the lack of a better one on on onebetter a of lack the forterm the uses he may, it as Bethat 38) 2008: (Heeks, ‖ farming firms can be called outsourcing is unclear: it looks more like market like more looks it unclear: is outsourcing called be can firms farming (Heeks, 2008: 5) 2008: (Heeks, t - based purchase‖, but rather a peer a rather but purchase‖, based econditions - levelling, the service through which a player lends lends player a which through service the levelling, This 15 2004; Barboza, 2005) without dwelling on the the on dwelling without 2005) Barboza, 2004; –

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and a clear hierarchical system. Little literature exists on the effects the on exists literature Little system. hierarchical clear a and c h easier to fin to easier h

informal sector in white in sector informal hl te gold the While - - olr self collar shoot of the informal sector, seeing how it fits into the definition of the of thedefinition into fits it seeingsector,informalhow the of shoot lem with these accounts is that, despite the fact that there is some is there that fact the despite that, is accounts these with lem n t and e who are literate or illiterate in regards to Internet use may lead lead may use Internet to regards in illiterate or literate are who e - d and access, large, industrial large, access, and d oe tradin money e reacn self freelancing he -

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CEU eTD Collection partglobal ofInternet thesector,an informal rather than phenomenon. the and world farming gold the both that conclude I why is That away. far t 146), 2005: itvirtual anincreasingly andphysicaldoes is indeedexist, one (Castronova, space still porous the between boundary a if that us shows itself practice The latter. the of extension an rather b not as space virtual the considering am I and denouncingdirected hatredthem. sometimes is theindiscriminate towards that wo farmers gold many which in conditions the of you. to similar more is that players fellow thewith business do to just itself act the of legitimacy the on the between distinction no to little saw interviewed have I players most out turns it fact, In intermediary. the from them buying than superior morally being as farmer the from directly vegetables buying consider would one as much legitimate, more channel official the consider to and acquired, be can advantages these distinction which in ways two the between clear a have to players most expected have I 335) 2007: Sun, & (Lin MMOs. fro directly nationality actual their of regardless Chinese‖, the from ―buying third informal, from money real with advantages i difference the was workers (Hart:returns. with erratic 68) 1971: freelance of number large a and scale of estimations poor taxation, no to little with globe When I refer to the practice of practice the to refer I When issue the regarding took I interviews in discussed have I that points key the of One m the game company, through ―microtransactions‖, in the Free to Play mode of of mode Play to Free the in ―microtransactions‖, through company, game the m hat allows self allows hat real money trading money real lgtmc ad oaiy ewe te rcie f ucaig in purchasing of practice the between morality and legitimacy n - separation for the purpose of purpose the for separation , from a player‘s point of view, while also considering more more considering also while view, of point player‘s a from , , which extends into the physical world, should be s be should world, physical the into extends which , real money trading money real eing separate from the so called ―real life‖, but life‖, ―real called so the from separate eing

18

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is being attacked from both inside and outside the game. Most players,do game. who the Most outside and inside both frombeingattacked is —

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civ htpsto,ta lyr ilrti h tts u o h sem and esteem the not but status, the retain will players that position, that achieve - inf - world shortcuts through which money can be directly converted into status into converted directly be can money which through shortcuts world lation - – game hierarchical status by making using of the mechanic the of using making by status hierarchical game

ency or other obtainable prime materials, such as leather or metal, easily easily metal, or leather as such materials, prime obtainable other or

Thousands of players who do nothing else in the game other than than other game the in else nothing do who players of Thousands and ultimately shattering the trade system. Most affected by this this by affected Most system. trade the shattering ultimately and

(Lehdonvirta, 2005: 3) This devalues the cu the devalues This 3) 2005: (Lehdonvirta, –

leads to an overproduction of those good, in the sense that that sense the in good, those of overproduction an to leads (Goffman, 1951: 295) 1951: (Goffman, r which players despise farmers has to do with the way a a way the with do to has farmers despise players which r 20

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broken English, English, broken been adopted by adopted been

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etc. etc.

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are treatedas such. –

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A significant number of authors, however, (Yee, 2006b; Jin, 2006 etc.) describe the the describe etc.) 2006 Jin, 2006b; (Yee, however, authors, of number significant A There are those who empathise with the famers, however. The NoGold organization, NoGold The however. famers, the with empathise who those are There P to the higher the to olice forces around the world are getting interested interested getting are world the around forces olice , hwn smah twrs hs wo ut oe n o oe te etr (Yee, sector. the cover to in move just who those towards sympathy showing e,

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that ―For me, the most correct way of doing this is if you were to to were you if is this doing of way correct most the me, ―For that - pr, f oen wo ly aant th against plays who someone of sport, The problem doesn‘t seem to be the transaction itself, but itself, transaction the be to seem doesn‘t problem The - farmers as non as farmers 29 farmers, because they aren‘t actually playing the playing actually aren‘t they because farmers,

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namely earlier, at hinted Alexandru what manner direct more a in stated also Virgiliu Centre the of rhetoric the escapes services virtual of outsourcing the sense, this In earnings can reach levels where pla where levels reach can earnings for advantages. thesame co mes withthe mes, ultimately quitting his day job. mes, ultimatelyquitting hisday - - worker, who they claimed has earned thousands of dollars by playing by dollars of thousands earned has claimed they who worker, oe acin os i Dal III Diablo in house auction money

disadvantages e game‘s launch. They both worked for a multinational multinational a for worked both They launch. game‘s e

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gold mue. hs os n o otait h Marxi the contradict to on goes This omputer. farmers, without them even living in the same town. without them evenfarmers, living inthe same Raven, bnig f h acut a wl a big quite being as well as account, the of banning e - ofin t wr fr gm hl ta employed that hall game a for work to boyfriend a 22 years old girl who was, along with 3 other 3 with along was, who girl old years 22 a 34 Raven - o lae, h i te n ta mngs the manages that one the is who leader, hoc

ald ―bots‖ called

told me that she wanted to buy a new new a buy to wanted she that me told he estimates that she will work for for work will she that estimates he pecially in the case of a small, small, a of case the in pecially –

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again, the real distinction is made by the player. The player player The player. the by made is distinction real the again, - r ago, I talked to a guy who used to work there and he still had still he and there work to used who guy a to talked I ago, r mentionsthat town, Raven uding some of her friends, mining gold in the MMORPG the in gold mining friends, her of some uding is

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CEU eTD Collection 2008. Gordon. Calleja, 2007. Gordon. Calleja, 2002. Chen. A. Martha & Marilyn Carr, Study, Finding Fact Economy: Informal The 2004. F. Kristina Becker, Chinese, to it Outsource Slay? to Ogre 2005. David. Barboza, In: Economy.‖ Cultural Global the in Difference and ―Disjuncture 1996. Arjun. Appadurai, Games Conference, Potsdam Wellington,Zealand New Immersion at Geneva, Internation Economy. http://www.ilo.org/dyn/infoecon/docs/37/F838851578/Globalization%20mine.pdf Informal the on Force Switzerland: Task ILO the by Poor Working commissioned the on Impact Investment and Trade Global Agency Cooperation http://rru.worldbank.org/Documents/PapersLinks/Sid Development DD404482&fta=y&incamp=archive:article_related&smid=pl http://select.nytimes.com/gst/abstract.html?res=F50E16FC3A550C7A8C (available UniversityPress. Minnesota of Large: at Modernity Bilbiography , unpublished PhD dissertation completed at Victoria University of of University Victoria at completed dissertation PhD unpublished ,

The Binary Myth Binary The Digital Games as Designed Experience: Reframing the Concept of of Concept the Reframing Experience: Designed as Games Digital Cultural Dimensions of Globalization of Dimensions Cultural

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