Nov 13 2007

SAS Economists Podcast #10: Perfect competition and comparative advantage in… the World of Warcraft!

by Hansen Gu and Elaine Lung

Economics is not just for people living in the “real” world, you know! No it’s not. For some of us in high school, we actually prefer the fantasy life of the World of Warcraft. And yes, there is a real economy in our world too. And yes, it does exhibit characteristics of pure competition, and YES, workers do specialize their production based on their own comparative advantage!

Jeeze, why do I feel like I’m always having to defend myself here? Anyway, to learn more about the economy of our favorite fantasy world, watch this video!

[youtube Z0lx4Bko70I]

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

7 responses so far

7 Responses to “SAS Economists Podcast #10: Perfect competition and comparative advantage in… the World of Warcraft!”

  1. ElaineLungon 17 Nov 2007 at 2:13 am

    So, we're kind of cool.

  2. Tim Con 17 Nov 2007 at 2:16 pm

    Pure awesomeness. I love how you guys synch the voice with the movements of the characters. I know first hand the troubles of owning a "firm" in WoW. you always have to check on other people's prices in the game in order to set a price where people would buy your item. To make it even more economic, you guys couldve also added in a section about short run response time because each item in the auction house has a set time in which it stays on the market so lots of the time when price changes, it require that you wait a period of time for you to reset your prices or you risk losing money.

  3. Jacques Zhangon 17 Nov 2007 at 7:10 pm

    Haha, this is really good. It's true that in a lot of RPGs these days, economics applies perfectly. I really like how you guys applied the concept of specialization into something people wouldn't normally notice. Good job!

  4. julie.linon 18 Nov 2007 at 3:39 pm

    this is pretty fun to watch :] "i love first aid!" haha! i know that a lot of people are really addicted to this game and they spend huge amounts of money in this, i never knew it was so similar to real economy, and it contributes to real economies too!

  5. Conrad Liuon 18 Nov 2007 at 7:15 pm

    Wow, I didn't know that a popular game like WoW could apply as a perfect economic example. And yet, I've been proven very, very wrong. Haha great job with everything, with the economic principles involved AND your video/audio quality.

  6. Kristie Chungon 19 Nov 2007 at 8:27 pm

    A really great job Hansen and Elaine 🙂

    Before watching this podcast, I did not realize that economics applied to WOW. It was enlightening… and the audio and video quality of your podcast was great. I also love how the actions of the characters matched what you guys were saying.. Once again, good job 🙂

  7. kevinhuangon 20 Nov 2007 at 7:07 pm

    awesome idea ^_^. i never would have thought of doing a podcast on something such as in-game economy.