The internal economics of a popular Minecraft server

Alice Maz Minecraft above cityAlice Maz writes about how she mastered the economics of Minecraft:

I started on my server with only a rudimentary knowledge of the game itself and ipso facto zero understanding of its economy. Within six months or so, I had perhaps as detailed a mental model of it as one could get. I knew the price ranges of most of the items in the game and everything that all of them were used for. I knew how common they were on the market, who the major sellers were, what their supply chains looked like. I knew how fast they sold through, whether the price was stable or tacking a certain way, and I had tons of theories on ways to play all this to get what I needed and turn a profit while doing it, and nearly all of them were sound. Most of it I didn’t even think about. I didn’t need to contemplate why, for instance, lumber was both cheaper and more common than it should be, such that I could buy it all and hold, force the price up, corner the market, and keep it that way. I just kind of… knew, and did it. It’s a wonderful feeling, weaving a system into your mind so tight that it’s hard to find the stitches after awhile. Highly recommended.

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Via Boing Boing:

Alice Maz was part of a small group of players who came to have near-total mastery over the internal economy of a popular Minecraft; Maz describes how her early fascination with the mechanics of complex multiplayer games carried over into an interest in economics and games, and that let her become a virtuoso player, and brilliant thinker, about games and economics.

Maz’s long, fascinating essay about her business ventures in Minecraft are a potted lesson in economics, one that shows where financial engineering actually does something useful (providing liquidity, matching supply and demand) and the places where it becomes nothing more than a predatory drag on the “real economy” of people making amazing things in Minecraft.

[The internal economics of a popular Minecraft server are an object lesson in everything great and terrible about markets]