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This thesis explores the economic systems of massively multiplayer video games, a young field commonly known as Synthetic Economics. A generalized version of the Faucet-Drain model is introduced to define the nature of synthetic economies, as well as an inflation model under the extreme cases of infinite demand and infinite supply. These models provide the theory necessary to analyze the included cases of virtual currency inflation, virtual item Trivialization, price ceiling-induced shortages, and infinite supply and demand originating from games themselves. In addition, the particularities of browser-interface MMOGs, which were not explored by prior literature, are explicated. The practical focus of this thesis applies the theory and cases to guide sustainable multiplayer game design, choose suitable monetization approaches, and maximize revenue given a particular monetization method. A final case utilizes these applications to sustainably increase the monthly revenue of a browser-interface MMOG. At the time of this thesis' submission, the implemented approach appears to have increased revenue by at least 10 percent. An additional application proposes browser-interface MMOGs as an effective and cost-efficient platform for social science experiments, contrasting the use of traditional MMOGs which have met little success for this purpose. |
