This was an example of one of many frontier kinds of research lead today’s more detailed researches focuses today to use this data to develop strategies.
EVE: Online as a Potential Microeconomic Model
Christopher Smith, author
Dr. Marianne Johnson, Economics, faculty mentor
Dr. Marianne Johnson is a professor of economics at UW Oshkosh. She frequently
teaches a research methods class called econometrics as well as introductory economics
courses and public economics. She has supervised nine Student/Faculty Collaborative
Research grants over the years as well as an equal number of Oshkosh Scholar
publications.
Abstract
EVE: Online (EVE) is a video game with one of the largest virtual economies
in existence. The question reigns, can a video game economy function realistically
according to microeconomic theory? To test this, I examined multiple variables for a
commodity in EVE over an extended period. I found that the commodity’s price and
demand acted in the same way that real-world commodity prices do. This suggests that
EVE’s economy adheres to microeconomic theory. Knowing this, there are many useful
applications for EVE as a tool to measure and predict microeconomic behavior and
possibly even macroeconomic behavior.
Conclusion
The evidence suggests that EVE adheres to real-world microeconomic assumptions.
It appears that game theory and auction theory are both testable mediums in EVE.
Furthermore, the data show a relationship between supply and demand that are accurate
according to microeconomic theory. My research indicates that further experimentation
would be worthwhile. Next time, perhaps, I would create a variable that accounts for
Page 36 Oshkosh Scholar
the dual relationship between sell order price and buy order price and their error terms.
If my results are found to be accurate on multiple or all occasions, it is reasonable to
say that economists can use EVE and possibly other video game environments to study
economics. If game designers were to enforce fiscal or monetary policy, they would
observe the effects of that policy as created by real people. EVE functions as
Dr. Guðmundsson intended: an observable universe that abides by and functions in
all the ways that classical economic supply and demand would suggest. Knowing that
EVE functions in an accurate economic way shines new light on modern econometrics.
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