mises.org: by Matthew Beller

In previous articles (here and here), I explored the economy and monetary scheme of Second Life, an online three-dimensional virtual world where users can create virtual goods and services and exchange them with one another. I also discussed issues surrounding the increasingly interventionist stance that Linden Lab, Inc., the creator of Second Life, has taken toward its economy.

In the field of macroeconomic theory, the Austrian view is distinct from other schools of economic thought due to its emphasis on the role of capital. In attempting to extend the application of Austrian economics to virtual economies, it will be a worthwhile exercise to explore the nature of capital that exists within Second Life and observe how it is evolving. [ read more ]