Avatarnomics: Virtual Deflation and EVE’s First Quarterly Economic Report

As noted by both Aaron Schiff and Portfolio.com’s Market Movers blog, Dr. Eyjólfur Guðmundsson, of the virtual online game EVE has released his first quarterly economic report.  It offers a fascinating look at the economy developing in EVE Online which has recently experienced the situation in which the money supply is increasing, but consumer prices are falling dramatically.  As the report notes:

“…Over the course of the third quarter of 2007 – which is equivalent to about three years IRL, money supply rose from ISK75 trillion to just over ISK90 trillion. At the same time, however, both producer and consumer prices have been falling.”

While Schiff’s question regarding which aspect(s) of the game’s design have lead to breaking the relationship between increasing money supply and inflation may intrigue only those serious economically-interested among us, we highly recommend the report as a terrific indication of the ever-increasing sophistication around MMOG analyses, economics, etc.

Now if we could just find a way to make some of the current real world economic woes virtual…



This entry was posted on Thursday, November 15th, 2007 at 3:31 pm and is filed under Blog.  You can follow any responses to this entry through the RSS 2.0 feed.  You can leave a response, or trackback from your own site. 

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