Work detail

Inflation of Virtual Currencies

Author: Mgr. Jiří Skuhrovec
Year: 2009 - summer
Leaders: doc. Mgr. Tomáš Holub Ph.D.
Work type: Economic Theory
Language: English
Pages: 66
Awards and prizes: M.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance and for an extraordinarily good masters diploma thesis.
Abstract: This papers examines formation of prices in virtual economy World of
Warcraft, and its interconnection with real economy through Real Money
Trade - exchange of in-game currency for real cash. Paper nds, that
WoW economy is heavily leveraged through this channel, namely that it
determines price level within the game. It empirically shows that causes of
long-run in ation of currency are EUR/CNY FX rate and patches issued
by game operator. Later on author builds general microeconomic model
of arti cial scarcity, to explain motivation of game operator to in
ate own currency. Last chapter is devoted to potential of virtual currencies,
argumenting with thoughts of Karl Menger, that these currencies may
be able to compete with real ones. Paper heavily relies on unique data,
collected using software developed by author.
Downloadable: Diploma Thesis of Skuhrovec


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