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Video Game Economics

February 12, 2023

Refer to Chapters 11, 12, and 13 in Virtual Economies: Design and Analysis Vili Lehdonvirta;Edward Castronova;Sandra Braman;Paul T. Jaeger. and answer the following questions. Provide a complete macroeconomic design diagram of the Rovio game Plunder Pirates. A) Specify a consumer price index (CPI) for the Rovio game Plunder Pirates and explain why your proposed measure is a feasible economic measure with reference to theory. B) Use your proposed CPI to identify inflation or deflation in key currency in the Rovio game Plunder Pirates. C) Calculate the Gross Virtual Product (GVP) of Plunder Pirates for one month; show your work and explain your logic. A) What are the objectives of monetary policy? B) Propose a modification in terms of monetary policy for the economy of the Rovio game Plunder Pirates to reduce inflation. analysis C) Use the benefit-cost analysis (BCA) method and specify the incidence of your proposed monetary policy.

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