Self-sustaining Free Market in WoW Economics in Azeroth

 

According to Adam Smith, whose treatise, The Wealth of Nations laid down the principles of a free market, an “ invisible hand” would guide the markets and keep them in check. While the governments of many capitalist nations intervene and regulate the markets to a certain degree, the means of production often are in private hands. However, there is still a place that has no mechanism, no intervention from government, nor any means of production owned by a government – World of Warcraft.

According to Eli Kosminsky, Blizzard has created a perfect “competitive market” in line with Adam Smith’s idea of free enterprise. Of course, there is the exception of Blizzard setting and changing prices for “in-game” items such as training for mounts, flying, food, dual specialization , and the like – which has devalued gold quite a bit. Otherwise, there is a hands-off approach to the economics within the system.

I have tried doing the full blown profession thing with tailoring and alchemy and tried enchanting, jewel crafting, and blacksmithing, but to little success. I have never tried engineering, it just seems too “out there” for me, nor really anything my character could use, except, of course, for some really cool mounts. In the end, though, I simply sell the materials I gather in AH and make a lot of wow gold by doing this.

Notice that when either a new patch or expansion drops, the prices for raw materials go up, as many players want to craft the latest recipes – which they can sell in the AH for huge amounts. After a bit of time, the price of the materials begins to drop, as the demand for them drops. There is nothing aside from Smith’s “invisible hand” guiding this.

I have my characters divided over two realms and have noticed that each realm acts as its own market. The prices for goods in the AH on the high population server are often more than two or three times that of the low population server.

The real difference in the economics in Azeroth and that of the real world is class identity, that's the thing a real world can learn from Azeroth. While the free market does provide anyone an opportunity to “level up” their profession to whatever level they like; the difference in the two is that in Azeroth I am not forced to live in some shanty simply because I choose not to go after the shiny objects or the cache of gold. There is no difference in how the classes are treated in Azeroth. We do not value those who provide us with our resources, we do not value those who craft our goods, in fact, we make them all second class citizens. The only way in Azeroth you know I am not of the upper class is by looking at my mount, or inspect one’s armor for heirlooms, how much wow gold you have and other items that require purchasing. We so easily can tell one’s economic class and judge that person for it.

Regardless, World of Warcraft can provide anyone a lesson in economics and the free market. So now it is your turn: what kind of wow gold maker are you: Bill Gates or the barista at your local coffee shop?

Source: http://blog.mmocarts.com