From The Economist:
Millions of people now spend several hours a week immersed in “massively multiplayer online role-playing games” (MMORPGs). These are often Tolkienesque fantasy worlds in which players battle monsters, go on quests, and build up their virtual power and wealth. Some synthetic worlds are deliberately escapist; others are designed to be as lifelike and realistic as possible. Many have a strong libertarian bent. Sociologists and anthropologists have written about MMORPGs before, but Mr Castronova looks at the phenomenon from a new perspective: economics.
Mr Castronova’s thesis is that these synthetic worlds are increasingly inter-twined with the real world. In particular, real-world trade of in-game items—swords, gold, potions, or even whole characters—is flourishing in online marketplaces such as eBay. This means in-game items and currency have real value. In 2002, Mr Castronova famously calculated the GNP per capita of the fictional game-world of “EverQuest” as $2,000, comparable to that of Bulgaria, and far higher than that of India or China.