Virtual Worlds, Real Economics

TECH Virtual Worlds, Real Economics Video games rot your brain and teach you econ MATTHEW MCCAFFREY V ideo games are playing an increasingly large role this, we see how their virtual reality imitates real-world in pop culture. Whether you play, or believe economic decisions. they are art (tinyurl.com/o3elpx9), gaming For instance, essentially all resources in the gaming will no doubt continue to be a major player in the world are scarce—that’s where the challenge comes entertainment industry. More importantly, libertarian from. If resources or experience points or time were ideas seem to be popping up everywhere in gaming unlimited, there wouldn’t be much of a game to play. But (tinyurl.com/nwhv7jh). Criticism of government is on because gamers routinely face these kinds of scarcity, they the rise, for example, and there is new emphasis on the are already familiar with the limitations they impose, and importance of free thought and action. have taken a first step toward economic understanding. To cite just two examples, Bioshock Infinite criticizes Scarcity means we have to make choices, and in this militarism and jingoism, while Assassin’s Creed 4: Black area games are pushing boundaries. Improved production Flag is largely a celebration v a lu e s i n t h e g a m i n g of pirate anarchy. Astute industry have increased gamers may even notice the immersive qualities of that an animator for Gears gameplay, to be sure. But it’s of War 3 put Mises’ motto, is a vibrant new arena of action the economic simulations Tu ne cede malis (“Do not that make the experiences where sound economic ideas have so real. Consider games like give in to evil but proceed ever more boldly against The Walking Dead, which a real chance to take hold. it”) in the game’s credits takes scarcity to an extreme sequence. by using the zombie This is all good news for libertarian ideas generally, apocalypse as a backdrop. Instead of combat, The Walking but also for economic education. Gaming culture is a Dead centers on difficult economic decisions, like how to vibrant new arena of action where sound economic ideas ration dwindling food supplies among survivors. Players have a real chance to take hold. There is already discussion become emotionally involved in the story by confronting about how in-game economies emerge and evolve scarcity and tough choices every step of the way. (tinyurl.com/ppvt2oq)—particularly how they deal Players’ decisions in turn imply tradeoffs and with money and inflation (tinyurl.com/lfeaxu6). opportunity costs. Anyone who has ever played a roleBut games incorporate economics at even more playing game (RPG) knows this territory well; choosing basic levels. Indeed, many gamers are already using the to allocate money or experience to a certain skillset means economic way of thinking without even knowing it. The that other skills must be forgone. And it’s a short step key point is that games are all about basic economic from there to realizing that the true cost of skills is not the concepts: scarcity, choice, tradeoffs, opportunity cost, resources you spend to obtain them, but the alternative trade, and entrepreneurship. If we think of them like abilities you could have acquired. GAMING CULTURE 32 THE FREEMAN: FEE.org/Freeman | JULY/AUGUST 2014 TECH TECH BioShock Infinite features an ultra-nationalist, militaristic dystopia. Photo courtesy 2K Games Because players have different opportunity costs, not entrepreneurial spirit. Being a gamer is about the ability everyone is equally suited to all tasks: Enter the importance to craft and control virtual worlds while, at the same of specialization and social cooperation. Cooperation time, learning to think creatively to overcome obstacles. on a grand scale features in many Massively Multiplayer Entrepreneurs do the same thing when they control Online RPGs (MMORPGs) such as World of Warcraft and productive resources in the constant drive to satisfy EVE Online, where the most important quests can only be consumers. It’s not a surprise then that the gaming industry completed if a large number is growing and innovating of diverse character types in ways similar to Silicon work together. Each member Valley and other focal of the party specializes in points of entrepreneurial i s a b o u t t h e a b i l i t y t o energy; the two go hand in enhancing the strengths or offsetting the weaknesses c r a f t a n d c o n t r o l v i r t u a l hand. of the others, producing The idea that gaming w o r l d s w h i l e l e a r n i n g t o intricate networks of conventions are reflections interdependence. think creatively to overcome of economic principles Trade is another vital one example of obstacles. Entrepreneurs do isthejust form of social cooperation, many opportunities the sa me thing when they for economic teaching and through the interactions of hundreds of thousands control productive resources presented by the mass (if not millions) of players, appeal of gaming. We’re in the constant drive to satisfy bound to see more as MMORPGs rapidly develop complex systems of barter the industry continues consumers. and monetary exchange. to thrive, so let’s be ready T he tea ching moment to show gamers that the comes when players get to experience the benefits of the experience they crave is not just good fun, but good division of labor; even better, the benefits of specialization economics. and trade are more obvious than in some ordinary market Matthew McCaffrey (mcm0016@gmail.com) teaches economics as a exchanges, where economic logic might seem too abstract. postdoctoral fellow in the Department of Liberal Studies at the University of Illinois at Springfield, and is editor of Libertarian Papers. Lastly, gaming showcases some of the best of the BEING A GAMER 33