Game Theory: World of Warcraft will SAVE the Economy

Pull out your imbued and nether weaved bag, hitch a ride on your local hippogriff, and hightail it to your nearest auction house because this episode is going to rock your world! of Warcraft *intro plays* Hello internet! Welcome to GAME THEORY the show that’s named after an economic principle but doesnt actually talk about economic principles UNTIL TODAY! with a new expansion pack in the works now seems to be a perfect time to discuss World of Warcraft and let’s face it. Some of you watching have spent more time in the last month instance running your main and rocketing your twink to the upper to echelon of the herbalism professional community than you have with your family,friends,pets & shower combined. but what if i told you that all the time spent developing phamilastrangement and a body odor resembling a stale CHEETO was actually giving wowsers the tools they need to navigate the most difficult problems in today’s economy that these noble panderians often sterotyped by the world as fat, basement dwelling trolls provide insight into the most complex financial issues the world has seen precisely because they’ve been grinding away for years at lesser scurge bats by the end of this episode you’ll see that when it comes down to it, the powers of these players and the lessons to be learned from Azeroth are truely out of this world *pause* of warcraft *8 bit happy music starts* for those of you who might not know, its worth pointing out that WOW is a genuine society containing a lot of the same aspects of a real world country it contains a virtual property, marketplaces, and real time exchanges.

100 thoughts on “Game Theory: World of Warcraft will SAVE the Economy

  1. Maybe even ROBLOX players! some guys are basically economic GODS in ROBLOX,and they gain REAL money with one of ROBLOX'S functions that let you trade robux for real cash.

  2. Been waiting a long time for that WoW theory. It's okay though, you have all the time in the world. With Battle for Azeroth coming out in the next months, you have plenty of theory fodder.

  3. The economy would be fine as long as countries and the 1% stop monopolizing everything for their own gain. The fact is that almost everyone is alive to benefit the few. Imagine a free to play game which attracts many people because it is free but it also got extremely bad P2W system which few will use to dominate the game and put the game out of balance while the free to play players are just a population count that entertains the few P2W players which wont exist if the free to play players left the game. That's how the real world works except you can't really just leave because there are rules that are meant to keep you in place while few people benefit from it. Economy isn't the problem, how our society works is the problem.

  4. 1:55 EvE Online is about 20 times more complex. The Market isn't magic. Goods have to be moved manual!

  5. as I was watching this I had my factorio game open in the background and one of the research had finished and its sound timed this moment perfectly 7:29

  6. Wait, so at a rate of 1 penny for 10,000 Marks at the time, the Germans were actually devaluing the paper by printing a Mark onto it?

  7. travelers tundra mamoths are bind on pickup so you can't buy them of the auction(sry can't speel) house, and you didn't say black market because that is different

  8. 2018 anyone? cuz now there is a new X pack BATTLE FOR AZEROTH .All u Hordes r prob gonna kill me and camp my body.

  9. Ha I haven't watched yet, but I give all my business credit to WoW. I opened a store 8 years ago with the ideas I used in WoW. It supports my family gave friends a job and life looks like life will work out for us.

  10. I have not read the comments so idk if anyone pointed this out yet, but there is a point in which you really can't have more gold on one character, i mean unless you use another character then sure but ion a single characetr iirc there is a maximum amount of gold one can have on them at a single time,

  11. Fiat currency is designed to let governments rob people. Trade paper for valuables, decouple the paper from worth, then inflate the paper through mass printing. The printers get the valuables, the people get the shaft.

  12. The reason items are selling so high is because Blizzard has made gold easy to get. When level cap was 60 and items vendor for copper and silver a single gold coin took all day to get, now at level 120 you vendor items for 75 gold coins and can make thousands a day.

  13. Anyone who's played the AH knows that supply side economics is utter bullshit.

    also this is quite old now, blizz has a way to deal with inflation through the game tokens and adjusting gold sources. various expansions now have increased and decreased inflation

  14. But wow has serval currency systems, gold isn't top dog, and the other are a) more fixed and b) reset each expansion, or more frequently.

  15. If nothing else, the WoW marketplace teaches the principles of supply/demand. But just like trading cards (which are literally worthless in "usefulness"), many things hold a collector's value.

    That's why trading cards, old currency, and retro games can fetch an outrageous price on the market: it's not the physical value, but a mix of supply/demand & collector's value.

    Any WoW player who has dabbled in the Auction market has learned this. The value of their goods is relevant to supply/demand along with how easy or difficult it is to pay for those goods. And of course, there's a niche market for collectors as well: these things are purely cosmetic (like a trading card), but the emotional/aesthetic value raises it's average sale price.

    Simply put: things will sell if people keep buying; we adjust prices to match the current economy, whether that's supply/demand or collector's value. It's simply a matter of observing the market and adjusting accordingly. Just like real life.

  16. Not gonna lie this is the worst theory you’ve ever made. You just talked about a couple similarities in the wow economy and were like gj man

  17. Huh, you made a wow economics video around the month frame my favorite channel extra credits did, that’s kinda cool

  18. got my own personal hippogrif and a ton of gold no need to hitch a ride. haha, no but seriously i have a waste of a life

  19. I've watched this maybe 6 times since it came out, and every time I complain about his lack of research cause there has always been a gold cap in wow
    as of this comment it's 10mil per character

    but it used to be 214,748 gold, 36 silver, 48 copper

    this always bothered me

  20. Random thing I noticed that has nothing to do with the video itself but the background music from the time 12:24 tell about the end sounds like the background Dungeon music for the 7th Saga

  21. This happened ages ago in a game called "The Kingdom of Loathing" (great game btw) but more suddenly, as people discovered cheats. To counteract this, the devs of the game put in "currency sinks", or pointless, really expensive items for a status symbol.

  22. It's good to see matpat making jokes about because CV that's not one funny moment with ronnie too bad they are limited

  23. Of course, the NPC market should set a floor on the price of loot. It makes no sense to sell loot at auction for less than it can be pawned to NPCs.

  24. I Just started playing WoW a few months ago, and this video is very relevant to what my friend and I do. Together we are able to almost keep a monopoly on the sale of deviate fish, and at one point had them selling for 50 gold each, up from the normal 10-14 gold. In my time playing I've also started making and selling flying machine mounts, and have sold them for as much as 15K gold at a cost of less than 1K gold each worth of materials purchased, even less when I do the farming myself. 1 hour of farming can turn into enough materials for 2-3 mounts

  25. Ever heard of Albion Online? Well, it's an MMO, kinda fun.
    There there is a way of dealing with infaltion. Im not entirely sure whether it works in 100%, but Im going to tell you anyway – you can buy premium with your money. I mean, money from game. Around 5kk, as I remember. And that is quite a lot. So:
    -players get money from monsters, quests or making deals with other players (marketplace is almost entirely player driven)
    -money flows throught accounts, let's say, an adventurer buys some equipment, then the person who crafted this equipment buys materials, and then… So on and so on.
    -All make profit and buy premium, making money go away.

    I can't say if it's perfect. But on paper it sounds great 😀

    It's not a solution for the real world, since there doesn't exist any money dumpster that burns money and gives useful rewards, but it may help WoW.

    Im quite sure there is a problem here, since it's so simple and yet it's not in WoW despite so many people thinking about it.

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