Virtual Economy Research Articles

Suspicious Financial Activity in the Context of In-Game Asset Exchange Marketplace

In this study, we investigated the expanding problem of suspicious activity when using online in-game asset trading platforms. The decentralized structures and anonymity offered by these platforms provide a basis for suspicious actions, creating a threat to the virtual economy. By evaluating 18,157 rows of anonymized transaction data from 38 unique sellers with the help of the interquartile range approach and network analysis, we were able to identify suspicious activities. The results highlight suspicious online activities of individual transactions. This research contributes by identifying new, concerning trends and unraveling complex networks by analyzing in-game asset transaction data. It also assists in informing experts and lawmakers about new suspicious activities.

Bank credit in the digital age: Expansion or excessive expansion?

This study demonstrates that digitalisation greatly facilitates the growth of credit, but does not result in rapid and unsustainable increase. The mechanism tests demonstrate that the influence of digitalisation on the growth of credit is accomplished by reducing the danger of bad debt after a loan and increasing the desire for risk before the loan. Upon further examination, it is evident that digitalisation has facilitated the growth of credit in the real economy while inhibiting the growth in the virtual economy. This study contributes to the existing literature on the nexus between digitalisation and loan allocation.

Big Data Analysis and Digital Sharing Research on Innovation and Entrepreneurship Education in the Digital Economy Era

Within the rapidly evolving panorama of the virtual financial system, the function of training in fostering innovation and entrepreneurship has become more and more vital. This study aims to explore how big records analysis and digital sharing techniques can be leveraged to complement innovation and entrepreneurship schooling. The observation is grounded within the context of the virtual economy generation, characterised with the aid of the proliferation of virtual technologies and the exponential boom of facts. The middle objective is to research how instructional techniques can be more desirable thru the utility of large records analytics and digital sharing, thereby preparing college students extra effectively for entrepreneurial roles inside the digital age. The studies employ a deep learning technique, combining quantitative information evaluation with qualitative insights. Primary statistics could be accumulated through surveys and interviews with educators and marketers, even as secondary statistics will be sourced from existing educational literature and case research. The observe will awareness on key regions which includes the effect of huge facts on expertise marketplace developments and client conduct, the function of virtual sharing in fostering collaborative learning and innovation, and the integration of these technologies into curriculum design and pedagogical practices. Anticipated results include a set of recommendations for academic institutions on integrating large statistics and digital sharing tools into entrepreneurship training. The study targets to offer insights into how this technology can enhance college students’ analytical and innovative skills, put together them for the challenges of the digital economic system, and foster a tradition of innovation and entrepreneurial attitude.

Communicating tokenomics and monetary policy: A comparative analysis of real and virtual economies

Communicating tokenomics and monetary policy: A comparative analysis of real and virtual economies

How do heavily polluting firms cope with dual environmental regulation? A study from the perspective of financial asset allocation

In view of the current debate on the relationship between environmental regulation and firm financial asset allocation (FFAA), this study explores the compound effect of binding environmental regulation (BER) and public environmental engagement (PEE) on FFAA. The results show that the single constraint of BER cannot effectively inhibit FFAA, and that the governance effect can only be produced in coordination with PEE. In particular, in state-owned enterprises, areas with a high marketization level, and areas with strong environmental supervision, the synergistic governance effect of dual environmental regulation is more obvious. The inhibition effect mainly depends on the reduction of long-term FFAA, and can simultaneously improve firms' economic and environmental benefits. A mechanism analysis finds that strengthening firm research and development (R&D) innovation and improving total factor productivity are important channels through which dual environmental regulation can collaboratively govern firms to avoid the shift from the real economy to the virtual economy. This study provides new insights for the analysis of the real economy from the perspective of environmental regulation, and also serves as a reference for the improvement of multiple collaborative environmental governance systems.

Why do players spend money on mobile massively multiplayer online role-playing games? A Wixom and Todd framework

Mobile massively multiplayer online role-playing games (MMORPGs) effectively motivate players to purchase in-game items, but the factors underlying purchase behavior in mobile MMORPGs remain inadequately understood. Utilizing the Wixom and Todd framework, our study explores how technological characteristics, gameplay experience, and attitudes drive players’ purchase behavior. Through online surveys and interviews, we found that advancement motivation and immersion significantly influence purchase intentions, with immersion being impacted by aesthetic design, customization, and sociability. This research expands the application of the Wixom and Todd framework into the realm of gaming and refines the immersion concept in the mobile MMORPG context.

Analysis of the Mechanisms Behind the "China Money Mystery"

The growth rate of China's broad money supply (M2) significantly exceeds the combined rates of economic growth and inflation, leading to a continuous rise in the ratio of M2 to GDP. This phenomenon is referred to as the "China Money Mystery." The explanation for this phenomenon involves several factors. Firstly, interest rate and exchange rate controls in the financial market lead to excessive increases in money demand. Secondly, financial repression results in excessive use of indirect financing and a lack of investment channels, further distorting money supply. Thirdly, the financial hoarding theory suggests that a large amount of money flows in the virtual economy rather than being invested in the real economy, thus failing to induce noticeable inflation. Finally, the applicability of traditional quantity theory of money in the modern credit money system is gradually diminishing, failing to explain the relationship between money supply and prices. By integrating these factors, a better understanding of the abnormal monetary supply phenomenon in China and its implications can be achieved.

Allocation of Financial Resources and Green Economic Development: Evidence from China

Green development has recently become the theme of global economic development. Focusing on green development, this paper uses China’s interprovincial panel data from 2003–2022 to construct a spatial Durbin model to study the impact of the allocation of financial resources between the virtual economy and the real economy on green development. The findings are as follows: (1) The “virtual and real” allocation of financial resources has a significant effect on the green development of the economy; on the whole, the increase in financial resources in the virtual economy reduces the quality of green economic development. (2) The “virtual and real” allocation of financial resources has an obvious spatial spillover effect on green economic development; the increase in financial resources flowing into the virtual economy in one province (city) reduces the proportion of financial resources flowing into the virtual economy in neighboring provinces, which is conducive to the green economic development of the neighboring provinces. (3) Due to the differences in economic structure, industrial structure, and financial development level among provinces and regions, the “virtual and real” allocation of financial resources has a significant effect on the green economic development of central, eastern, and western China.

The MTGO Virtual Economy: A Case Study on a “Play-to-Earn” Game That has Existed Since Before Cryptocurrency Was Even Invented

MTGO is a virtual simulation of the popular tabletop game, Magic: The Gathering Online. For over 20 years, it has developed a robust virtual game economy that is connected to the real-world market through the game's set redemption feature. In this case study, it is shown that the different facets of the MTGO economy have enabled it to thrive while avoiding or naturally addressing problems such as hyperinflation that have commonly arose in other virtual game economies, including those that fall under the contemporary and at times controversial concept of play-to-earn model games. Through this expository paper, it is argued that the MTGO economy is a rich source of information that is worth exploring for the benefit of fields such as game development research, game behaviors research, and experimental economics.

Architecting virtual storefronts: how in-game shops are designed to encourage consumption

ABSTRACT As a multi-billion-dollar global industry, commercial games are designed to profit off players, keep them engaged, and have them return for more. This article examines the design of the in-game shop as a specific context of monetization. Through an immersive netnography of seven commercial games, the findings reveal three architectural shop elements that collectively encourage continuous engagement and spending. Shop entanglement refers to the strategic placement and contents of in-game shops, commercial concealment highlights the integration of shop promotions within the gameplay to mask their commercial intent, and transactional fluidity details the conflation of virtual and real currencies to obscure actual prices in the shop. Together, these elements create a cohesive shop system that seamlessly incorporates spending into the core gameplay. This paper contributes to the broader discourse on gaming monetization and virtual economies, emphasizing the need for ethical considerations to ensure consumer protection and foster a fair gaming environment.

Can ESG Ratings Suppress Corporate Financialization?

Corporate financialization represents a significant aspect of the shift from a real to a virtual economy. Curtailing financialization behavior in corporations is essential for fostering a sustainable and robust real economy. ESG (Environmental, Social, Governance) ratings, as an emerging evaluative system, are increasingly influencing corporate governance and investment decisions, potentially mitigating the drive towards corporate financialization. This study utilizes panel data from Chinese listed companies between 2008 and 2021 and applies a multi-period DID (Difference-in-Differences) methodology to empirically examine the impact of ESG ratings on corporate financialization levels. The findings reveal that ESG ratings significantly inhibit corporate financialization. This conclusion is reinforced by parallel trend tests, placebo tests, and PSM-DID robustness checks. Further analysis shows that the inhibitory effect of ESG ratings on financialization is more pronounced in non-state-owned enterprises and companies located in eastern regions. This research provides new insights into the influence of ESG ratings on corporate behavior, offering empirical evidence and reference for policymakers aiming to promote sustainable corporate practices and curb financialization.

Influences on gambling during youth: comparisons between at-risk/problem, non-problem and non-gambling adolescents in Australia

ABSTRACT Gambling patterns among young people are diverse, yet factors that affect changes in their gambling behaviour as they mature remain poorly understood. This study explores gambling trajectories and related sources of influence during childhood, early adolescence and later adolescence, and amongst adolescents at different levels of gambling risk. Qualitative interviews and online communities with 89 Australians aged 12–17 years explored their gambling experiences, from childhood to the present. Reflexive thematic narrative analysis revealed that children often learn how to gamble through their parents. Parents, peers, sports interests, advertising and simulated gambling continue to transfer gambling knowledge and skills throughout adolescence. Gambling is further reinforced through social rewards and is highly normalised through advertising. At-risk/problem gambling adolescents tended to report positive early memories of gambling, but also harmful parental gambling. They reported having friendship groups where betting is highly normalised. They purposefully honed their betting knowledge to demonstrate skill, and also gambled with in-game items (skins). Conversely, non-gamblers reported very little exposure to parental gambling, mirrored their parents’ negative attitudes to gambling, were unlikely to have friends who gambled, and reported less interest in professional sport. Reducing youth gambling and gambling harm requires measures to tackle multiple layers of influence.

Decentralized Identity Verification in Metaverse Auditing Using Blockchain Technology

This research paper presents a comprehensive review of decentralized identity verification in the context of metaverse auditing, leveraging blockchain technology. With the rapid evolution of virtual environments and the emergence of the metaverse, ensuring trust, transparency, and security becomes paramount. Traditional centralized identity verification systems face challenges in such decentralized and dynamic environments. Blockchain technology offers promising solutions by providing a transparent, immutable, and decentralized ledger for identity management and verification. Conceptual Analysis research methodology used in this research paper because theoretical and conceptual clarity are crucial for understanding complex phenomena. The paper begins by exploring the concept of decentralized identity management systems and their significance in virtual environments. It discusses various challenges associated with traditional identity verification methods and highlights the potential of blockchain-based solutions in addressing these challenges. Through a systematic literature review, the paper examines existing research and developments in decentralized identity verification, metaverse auditing, and blockchain technology. Key topics covered include the architecture of decentralized identity systems, consensus mechanisms for identity verification on blockchain networks, privacy-preserving techniques, and interoperability standards for cross-platform identity management. Furthermore, the paper investigates the role of smart contracts and decentralized applications (DApps) in facilitating identity verification processes within the metaverse. The review also discusses the potential implications of decentralized identity verification in enhancing trust and security in virtual economies, enabling seamless user experiences, and fostering innovation in digital asset management. Moreover, it identifies current gaps and challenges in the field and proposes future research directions to address these issues. Overall, this research paper contributes to the understanding of decentralized identity verification in metaverse auditing using blockchain technology. It serves as a valuable resource for researchers, practitioners, and policymakers interested in exploring the intersection of decentralized identity, virtual environments, and blockchain technology. The insights provided aim to stimulate further research and innovation in this rapidly evolving domain.

The Impact of Digitization on Housing Prices: Evidence from China

Issues: The housing prices (HP) in China has been rising over the past 20 years, which is too extremely high to afford for citizens. Also, high housing prices results in various problems, such as increasing financial risks, a shift from physical economy to virtual economy, innovation obstacles, crowding out residents’ consumption, among others. Objective: This study strives to investigate the impact of digitization on HP, with an aim to explore an effective way to tackle high housing prices issue in China. Theoretical Framework: Digitization can essentially effluence the HP through various channels, such as promoting the economic efficiency, improving the infrastructure, affecting the population agglomeration, and increasing the availability for residents to work remotely, etc., whereby it plays a substantial role in curbing the housing prices. Method: With a sample of 279 cities covering the period from 2011 to 2019, a dynamic panel method, General Method of Moment model (GMM) is adopted to run the empirical analysis. Results: The empirical results confirm an inverted U-shaped relationship between the HP and digitization, which indicate that digitization (DIG) acts as an impetus to increase HP at the first stage, but when the digitization surpasses the turning point, it may exsert a powerful force to lower housing prices. Implications: Improving the digitization is among the solutions to curb high housing prices, as long as the digitization exceeds the inflection point. Originality: This study first concludes digitization can be a considerable effluence on housing prices, providing a new insight into solving high housing prices.

The Symbiosis of Tangible and Intangible MarketImpact of Economic Growth

With the popularization of Internet technology, the economic form has changed from single to diversified. As an emerging force in the economic field, the virtual economy has strong vitality and is sweeping all walks of life with unprecedented momentum. Traditional industries have experienced new vitality due to the rise of the virtual economy, which has also impacted the dominant structure of the real economy in the past, bringing new challenges and opportunities to the real economy. The virtual economy and the real economy, as two important components of the economic system, are inextricable. The paper commences by examining the relationship between real and virtual economies, utilizing the investigation method, literature research method and model method to analyze the definition and future development orientation of the real economy and the virtual economy, and is committed to the exploration of the coordinated development strategy of the two. Research shows that the virtual economy and the real economy are closely related, and the two are interdependent and affect each other. The development of the virtual economy plays a "double-edged sword" role in the real economy.

Digital literacy and financial inclusion in virtual economies: Analyzing the role of education in shaping attitudes toward cryptocurrencies

The development of cryptocurrencies has altered traditional economic institutions and financial inclusion. This study investigates the complicated relationships between education, digital literacy, cryptocurrency views, and financial inclusion in virtual economies, addressing a key gap in comprehending the disruptive dynamics of emerging financial technologies. Undergraduate, postgraduate, and PhD students from private universities in Delhi NCR were polled using a standardized questionnaire with a 5-point Likert scale. According to the study, higher education boosts digital literacy, cryptocurrency opinions and financial inclusion. Although education is critical for financial inclusion, the link between positive attitudes about cryptocurrencies and financial inclusion remains uncertain. As virtual currencies expand, these results urge policymakers and educators to concentrate on digital literacy and positive attitudes in order to promote inclusive financial ecosystems.

Does common institutional ownership restrain corporate financialization?

Using a sample of Chinese non-financial listed firms from 2007 to 2021, we investigate the impact of common institutional ownership on corporate financialization. Our results show that common institutional ownership generates the “synergy effect” by restraining corporate financialization. We then assess the channels and find that common institutional ownership plays dual roles as an “information disseminator” and a “governance practitioner,” effectively curbing corporate financialization by enhancing information acquisition abilities and mitigating managerial myopia. Our cross-sectional tests reveal that the “synergy effect” is more pronounced when there is common institutional ownership without business affiliations or with larger network size, and when firms have lower state or management ownership. Finally, common institutional ownership guides firms toward developing the core business while enhancing firm value. Our findings have potential implications for regulatory authorities in guiding the benign interaction between real and virtual economies and preventing systemic financial risks.

Pro Trader RL: Reinforcement learning framework for generating trading knowledge by mimicking the decision-making patterns of professional traders

This study proposes a novel reinforcement learning (RL) framework, professional trader RL (Pro Trader RL), which mimics the decision-making patterns and trading philosophy of professional traders in stock trading. By exploiting the characteristics of RL, the framework aims to learn efficient trading strategies while mimicking the trading philosophy and risk management methods of professional traders. The framework takes into account the complex nature of the stock market and presents an integrated approach to RL, from data pre-processing to buying, selling and stop-loss. Pro Trader RL consists of four main modules. Data Preprocessing, Buy Knowledge RL, Sell Knowledge RL and Stop Loss Rule, each of which plays the role of professional traders knowledge. The results of three experiments show that the framework achieves high returns and Sharpe ratio regardless of market conditions and has stable performance with low maximum drawdown (MDD), which is superior to the state-of-the-art research. The proposed framework provides a novel approach to applying RL to the stock market and is expected to be useful and applicable in real-world trading settings.

REAL MONEY TRADING IN FREE FIRE: BETWEEN ECONOMIC OPPORTUNITY AND ISLAMIC LAW RISK

The phenomenon of Real Money Trading (RMT) in online games such as Free Fire has become a global phenomenon with significant economic and social impacts. RMTs offer economic opportunities for individuals and communities, such as sources of income and job creation. However, RMTs also contain Islamic legal risks, such as gharar (uncertainty), riba (interest), and maisir (gambling). This article aims to maximize the economic opportunities of RMT while minimizing the risks of Islamic law through the establishment of RMT contracts and transactions in accordance with Islamic principles, the improvement of public education, and the formulation of ethical RMT regulations. The findings of this study can help in formulating responsible RMT policies and practices. The phenomenon of Real Money Trading (RMT) in online games such as Free Fire has become a global phenomenon with significant economic and social impacts. This article aims to analyze the economic opportunities and risks of Islamic law related to RMT in Free Fire. This research uses a qualitative approach with the method of literature study and analysis of Islamic jurisprudence. This research uses methods of literature study and analysis of Islamic jurisprudence to gain a comprehensive understanding of the issue. The results show that RMTs offer economic opportunities for individuals and communities, such as sources of income and job creation. This article makes an important contribution to the understanding of Real Money Trading (RMT) in the perspective of Islamic law. Through qualitative approaches and methods of literature study and analysis of Islamic jurisprudence, the study shows that RMT offers economic opportunities for individuals and communities such as sources of income and job creation. However, RMTs also carry Islamic legal risks such as gharar (uncertainty), riba (interest), and maisir (gambling). In light of this, this article provides findings that can assist individuals, communities, and policymakers in formulating ethical and responsible RMT policies and practices.

Meta Land: Redefining Virtual Communities through Centralized Governance, Inclusivity and Innovation

Within the dynamic realm of virtual communities, Meta Land presents itself as a welcome deviation from the decentralised standard. It presents a centralised platform with an emphasis on user participation, creativity, and inclusion. In contrast to conventional metaverse platforms, ML priori- tises the development of significant relationships via its sub- community platform, serving a variety of demographics including independent contractors and students. Decentralised governance gives people the ability to control machine learning, making sure that it stays in line with the community’s overall goals.By means of its virtual economy and engagement mechanisms that provide incentives, ML facilitates equal participation and cultivates a lively community culture. By providing a dynamic and engaging experience for people globally, ML aims to change the virtual environment with a dedication to ongoing innovation and sustainability.