Currency Emergence in Absence of State Influence: The Case of Diablo II

Cosmos + Taxis, Vol. 2, No. 2, 2015

23 Pages Posted: 15 Dec 2013 Last revised: 31 Mar 2015

See all articles by Alexander William Salter

Alexander William Salter

Texas Tech University - Rawls College of Business; American Institute for Economic Research

Solomon M. Stein

George Mason University

Date Written: February 28, 2015

Abstract

This paper presents a case study of the emergence of currency from a barter economy, a process discussed theoretically by Menger (1892). In particular, we use this case study to attempt to adjudicate between chartalist and emergent theories of currency formation. Using the records of an online message board dedicated to facilitating trades within the game, we document the emergence of currency and its stability over time, and note that the environment lacks the sort of agent required to cause a currency to emerge in the chartalist theory.

Keywords: Chartalist, medium of exchange, Menger, money emergence, online societies, state theory of money

JEL Classification: E40, E42, E49, P16

Suggested Citation

Salter, Alexander William and Stein, Solomon M., Currency Emergence in Absence of State Influence: The Case of Diablo II (February 28, 2015). Cosmos + Taxis, Vol. 2, No. 2, 2015. Available at SSRN: https://ssrn.com/abstract=2367484 or http://dx.doi.org/10.2139/ssrn.2367484

Alexander William Salter (Contact Author)

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States

HOME PAGE: http://awsalter.com

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

Solomon M. Stein

George Mason University ( email )

4400 University Drive
Fairfax, VA 22030
United States

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