November 4th, 2009
Via The Virtual Economy Research Network, an interesting review of several new papers published on gambling and econometrics in virtual worlds. As the article notes online gambling can occur in implicit as well as explicit channels online, with Entropia being a specific example since its virtual currency is redeemable for real money (making it, in the eyes of the reviewer, essentially gambling):
- Payback of Mining Activities Within Entropia Universe (authors: Markus Falk, Daniel M Besemann, James Michael Bosson)
Abstract—In subscription-based virtual worlds the fee a user pays for participation is clear. However, in worlds in which the provider’s revenue is generated via transactions made by users using a real in-world currency, lack of transparency in the underlying mechanisms can make it difficult for a user to gauge the service fee being paid. This paper studies the payback of mining activities within the virtual world Entropia Universe, with an aim to determine the cost of participation in this activity for the user. Entropia Universe developer MindArk estimates the normal service fee for an active user averages at $1 per hour. We compare our findings to this figure and observe how transactions between players can affect a user’s returns. A statistical approach is employed, based on a large number of data points acquired by two Entropia Universe avatars. A theoretical mining-returns model is also created, consistent with our data sets, and is used to make predictions about general cost and profitability for Entropia Universe miners. These methods could be used to analyse the economy of other activities in Entropia Universe, and possibly activities other virtual worlds.
Comments:
This paper nicely summarises the Entropia Universe economy, which is described as a game of chance played against the house. A level of skill is required to maximise one’s chances of winning, but in the long run, the house always wins. Since Entropia’s virtual currency is redeemable for real money, it is essentially gambling. Blackjack seems to be the the closest comparison that comes to my mind…“
- Machine Ethics for Gambling in the Metaverse: an “EthiCasino”
Abstract— Online gambling produces a substantial turnover. Unfortunately for potential virtual world gamblers and gambling organizations alike, US law had forced the closure of gambling in the Second Life virtual world. However, an Open Grid Protocol could lead to the provision of off-shore gambling in this virtual world. Aside from legal issues, online gambling generally gives rise to ethical issues relating to prevention of harm. We considered the combined legal and ethical issues, and have proposed and begun to construct and evaluate a system with computational oversight: an ethical advisor. The system is grounded in recent research into Machine Ethics, which may offer insights into other legal and ethical matters, and provides a framework for responsible gambling in our EthiCasino (ethical virtual casino) in Second Life.
This entry was posted on Wednesday, November 4th, 2009 at 5:10 pm and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
