IDEAS home Printed from https://ideas.repec.org/a/oup/jecgeo/v24y2024i5p729-758..html
   My bibliography  Save this article

Land valuation in the metaverse: location matters

Author

Listed:
  • Mitchell Goldberg
  • Peter Kugler
  • Fabian Schär

Abstract

In urban economics, transportation costs are a key determinant of land value. However, in virtual worlds, these costs are generally limited by the users’ ability to teleport. Drawing from urban and attention economic literature, we propose a theoretical model microfounded on user behavior. The model suggests that the relative value of land parcels hinges on their potential to attract visitors. Our empirical analysis supports this by demonstrating that location remains crucial in virtual worlds and highlighting the role of the teleportation threshold. We discuss the model’s general applicability, reaffirming the significance of location within most virtual worlds.

Suggested Citation

  • Mitchell Goldberg & Peter Kugler & Fabian Schär, 2024. "Land valuation in the metaverse: location matters," Journal of Economic Geography, Oxford University Press, vol. 24(5), pages 729-758.
    • Handle: RePEc:oup:jecgeo:v:24:y:2024:i:5:p:729-758.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jeg/lbae027
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    attention economy; locally weighted regression; metaverse; NFTs;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jecgeo:v:24:y:2024:i:5:p:729-758.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/joeg .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.