Aviators, Moguls, Fashionistas and Barons: Economics and Ownership in Second Life

Abstract

Second Life is a digital world that relies on a unique combination of grid computing and streaming technology [Rosedale03] to enable virtually all of its content to be created by its residents. To maximize the quality and quantity of user-created content, Second Life has embraced strong economic and legal connections to the real world. This approach is quite different than conventional massively multiplayer online games (MMOGs). Since Second Life launched in June of 2003, significant changes have been made to the business model and internal economic structure. These changes have shaped the many approaches residents have taken to creating content, building experiences and making real-world profits. This Article will discuss the evolution of Second Life's business model and internal economy, its entrepreneurial activities, and the impact of those activities on Second Life's residents and community.

Keywords: Information and internet services, computer software, virtual worlds, second life

JEL Classification: L86