The Trade Between the Virtual and the Real World: Buying and Selling Virtual Goods For Real Money
In this paper the trade of virtual items in online games for hard currency is analysed using economic theory. There are real welfare gains from trade but the game designer’s interests must be taken into account when deciding whether trade is desirable or not. Ricardo's Comparative Advantage and Hecksher-Ohlin Factor Proportion theories lead to conclusions about game design when trade is free.
