INSEAD; Second Life

Description

chance

---- by Shellie Karabell -----
  
In the beginning, the online virtual world was a place for action video games such as Grand Theft Auto, or hanging out and chatting. Today, it’s a very different place. Commerce and capitalism have entered the picture.


“A big change happened when the virtual worlds decided to give ownership to assets (there), which gave rise to an interesting and thriving economy,” says Miklos Sarvary, the new Dean of Executive Education at INSEAD and creator of the school’s campus in a virtual world called Second Life. “People started to develop clothes and lights and chairs and rooms and houses, and because there was ownership, they began to trade, and you have today a thriving economy where people are not just going to chat but also to shop: they go to bars, which actually generates some revenue from those visits. There’s an economy going on. Ownership really created an environment similar to the real world in the sense that people can come up with their own projects and you can find literally any kind of real world activity.”

INSEAD bought its own virtual island in Second Life to set up a virtual campus a year ago. Why an island? “When you are in Second Life, the best way to have a private environment is to buy an island,” says Sarvary. Another parallel with life in the real world: “It cost about $1,000 and we have to pay rent of $100 a month. It’s a pretty good deal in my mind.” 

The assets purchased may be ‘virtual’ but the money exchanged to buy them is real, and a virtual banking system handles transactions. “There’s an exchange rate and an internal clearing system. People earning money on Second Life can exchange their online dollars for money in the real world,” he says. “And globally, we are talking about a virtual economy that ...

Original URL

http://knowledge.insead.edu/contents/insead-second-life-091020.cfm?vid=325

http://knowledge.insead.edu/contents/insead-second-life-091020.cfm?vid=325