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The Price of Bodies: A Hedonic Pricing Model of Avatar Attributes in a Synthetic World

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  • Edward Castronova

Abstract

This paper explores a unique new source of social valuation: a market for bodies. The internet hosts a number of large synthetic worlds which users can visit by piloting a computer‐generated body, known as an avatar. Avatars can have an asset value, in that users can spend time to increase their skills; these asset values can be directly observed in online markets. Auction data for avatars from the synthetic fantasy world of EverQuest are used here to explore a number of questions involving the relative value of different body characteristics. Hedonic analysis of the auction price data suggests that the ‘level’, a game‐design metric that indicates the overall functionality or power of the avatar, is by far the most important attribute of the body. Other attributes that show significant price effects include: sex and class (i.e. being a wizard rather than warrior type of character). The male‐female price difference is interesting because there are actually no sex‐based differences in the abilities of the avatar bodies, by design. Price differences here must be caused by some other aspect of buyer preferences, ones unrelated to power or functionality of the avatar itself. Dieser Artikel untersucht eine einmalige neue Quelle für soziale Wertschätzung: einen Markt für Körper. Im Internet befinden sich zahlreiche grosse synthetische Welten, die die Anwender mit einer computergenerierten Figur (genannt Avatar) besuchen. Avatare haben einen Sachwert, da die Anwender Zeit damit verbringen, ihre Fähigkeiten zu verbessern. Diese Werte können auf Online‐Märkten direkt beobachtet werden. Wir benutzen hier Auktionsdaten der Fantasiewelt ‘EverQuest’, um den relativen Wert von verschiedenen körperlichen Attributen zu untersuchen. Eine Analyse der Auktionspreise lässt vermuten, dass das ‘Level’, ein Mass im Spieldesign, das die gesamte Funktionalität oder Macht des Avatars beschreibt, die bei weitem wichtigste Charakteristik ist. Weitere Attribute mit signifikanten Auswirkungen auf den Preis sind Geschlecht und Klasse (z. B. Zauberer oder Krieger). Der Preisunterschied zwischen männlichen und weiblichen Charakteren ist interessant, da praktisch keine geschlechtsabhängigen Unterschiede der Fähigkeiten vorgegeben sind. Preisunterschiede müssen hier auf anderen Aspekten der Käuferpräferenzen beruhen, die nicht mit der Macht und der Funktionalität der Avatare in Zusammenhang stehen. Cet article explore une nouvelle et unique source d'évaluation sociale: un marché pour des corps. Sur internet, on trouve un grand nombre de mondes synthétiques que les utilisateurs visitent en se servant d'un corps virtuel, le soi‐disant avatar. Les avatars ont une valeur réelle puisque les utilisateurs passent du temps à améliorer leur habileté; ces valeurs peuvent être observées directement sur des marchés en ligne. Les données des enchères du monde virtuel d'EverQuest sont utilisées ici pour évaluer un nombre de questions relatives aux valeurs de différentes caractéristiques des avatars. L'analyse hédonique des prix aux enchères suggère que le ‘niveau’, une mesure inhérente au jeu qui indique la fonctionnalité ou le pouvoir d'un avatar, est de loin la caractéristique la plus importante. D'autres attributs qui exercent une influence significative sur le prix sont le sexe et la classe (p.ex. être un magicien plutôt qu'un guerrier). La différence de prix entre les sujets masculins et féminins est intéressante, puisqu'il n'existe pas de différence dépendant du sexe quant à l'habileté des caractères. La différence de prix doit donc dériver d'une autre préférence des acheteurs qui n'est pas en relation avec le pouvoir ou la fonctionnalité des avatars en tant que tels.

Suggested Citation

  • Edward Castronova, 2004. "The Price of Bodies: A Hedonic Pricing Model of Avatar Attributes in a Synthetic World," Kyklos, Wiley Blackwell, vol. 57(2), pages 173-196, May.
    • Handle: RePEc:bla:kyklos:v:57:y:2004:i:2:p:173-196
    DOI: 10.1111/j.0023-5962.2004.00249.x
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    References listed on IDEAS

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    1. Edward Castronova, "undated". "Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier," Gruter Institute Working Papers on Law, Economics, and Evolutionary Biology 2-1-1008, Berkeley Electronic Press.
    2. Edward Castronova, 2002. "On Virtual Economies," CESifo Working Paper Series 752, CESifo.
    3. Patrick Bajari & Ali Hortacsu, 2002. "Cyberspace Auctions and Pricing Issues: A Review of Empirical Findings," Working Papers 02005, Stanford University, Department of Economics.
    4. Edward Castronova, 2001. "Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier," CESifo Working Paper Series 618, CESifo.
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    1. Kevin Hoefman & Aaron Bramson & Koen Schoors & Jan Ryckebusch, 2018. "The impact of functional and social value on the price of goods," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-12, November.
    2. Stadtmann, Georg & Tosun, Aynur Dilan & Pierdzioch, Christian, 2020. "Are female skins sold for a lower price? Evidence from the Fortnite game," Discussion Papers 420, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    3. Fiore, Stephen M. & Harrison, Glenn W. & Hughes, Charles E. & Rutstrm, E. Elisabet, 2009. "Virtual experiments and environmental policy," Journal of Environmental Economics and Management, Elsevier, vol. 57(1), pages 65-86, January.
    4. Handan Vicdan & Ebru Ulusoy, 2008. "Symbolic and Experiential Consumption of Body in Virtual Worlds," Post-Print hal-01892899, HAL.

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