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In conditions of high prevalence/visibility, the negative externalities are usually assumed to be greater than any possible trade Bounty Bay gold gains. But in lower degrees of prevalence, trade gains may well be greater than the externalities.
A point where a marginal increase in prevalence results in more negative externalities than trade gains is the efficient level of RMT (Figure 1) (i.e. Pareto optimal, given a few assumptions). Where this point is depends on the preferences of the player base.
Can we link this neat construction with reality in any way? MMORPG operators have an interest in pleasing their customers. Assuming efficient pricing, player aggregate welfare correlates with the operator's revenues.
Joshua and others pointed out that MMORPG operators are not doing everything in their power to stop RMT. For example, they are not commonly banning players for buying, only for selling.
A certain level of RMT is tolerated as long as it does not become too overt. This could indicate that there is indeed an above-zero efficient level of RMT towards which operators are gravitating.
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