
Libertarian-leaning news source reason.tv has a fascinating piece on free market economics in Second Life.
SL is based on a simple set of institutional arrangements that would make F.A. Hayek proud. In essence, the people who own the property in SL make the rules. The result is a spontaneously ordered world in which residents are free to fly, teleport, build, trade and interact with others without interference from the state.
Recently, Linden Lab—the SL equivalent of a state—has begun acting more and more like a real life government by restricting activities such as gambling. But open source competitors based on the SL platform are currently in development. So better virtual worlds offering even more freedom are just around the corner.
As virtual real estate gains value, it will be interesting to see how MMO hosts like Linden Labs handle personal property. They draw parallels between the folks who sought freedom in the New World centuries ago and those who seek liberty and fortune on these new virtual frontiers. Neat stuff.
For some reason (ha!), I can't get the video to embed here, so you'll just have to click on through to the other side.
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