Virtual Microeconomics

Worlds of virtual reality are becoming ‘the’ game of the internet; Second Life, Entropia Universe, EVE and others are providing a life away from reality that are fast mimicking every aspect of real life. A very creative woman, Anshe Chung, has become the first virtual millionaire in Second Life and is now the owner of a pawnshop/bank in Entropia. The difference is that now she is converting her virtual worth into real money.
Millions of people are involved in these virtual worlds. They make virtual friends, visit virtual entertainment venues, create virtual merchandise, even alter their virtual appearance. But step outside the bounds of proscribed behavior and you can be wiped off the face of a virtual earth. All of the worlds go to lengths to protect their inhabitants from predators and bullies. Get too many complaints about not playing nice and your account can be removed, which can be the same thing as being executed for bad language.
The question is: will economists in the real world will be able to apply the lessons taught by the gamer mind in virtual reality? What can we learn by the combined brain power of people across the world who set aside the cultural differences that lead to war in real life to generate a peaceful howbeit frantic and structured virtual life? Does the world of negotiation and strict behavioral regulation make for a world of virtual or real peace? Can we really do this or is it all just a dream?

