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The Price of "Man" and "Woman": A Hedonic Pricing Model of Avatar Attributes in a Synthetic World

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  • Edward Castronova

Abstract

This paper explores a unique new source of social valuation: a market for bodies. The internet hosts a number of large synthetic worlds which users can visit by piloting a computer-generated body, known as an avatar. Avatars can have an asset value, in that users can spend time to increase their skills; these asset values can be directly observed in online markets. Auction data for avatars from the synthetic fantasy world of EverQuest are used here to explore a number of questions, especially those involving the relative value of male and female avatars. In EverQuest, about 20 percent of the avatar population is female, and there are no sex-based differences in avatar capabilities. Many avatars (about one-fourth to one-fifth of the population) are cross-gendered, being piloted by a person of the opposite sex. Nonetheless, relations between avatars are gender-based, and include chivalry, dating, and sex. Female avatars tend to be concentrated in highly sexualized Human and Elven races, with very few being present among such aesthetically-challenged races as Ogres and Trolls. Hedonic analysis of the auction price data suggests that gender labels are a less important determinant of avatar values than the ‘level,’ a game-design metric that indicates the overall capabilities of the avatar. Thus, ability seems more important than sex in determining the value of a body. Nonetheless, among comparable avatars, females do sell at a significant price discount. The average avatar price is 333 dollar; the price discount for females is 40 to 55 dollar, depending on methods. The discount may stem from a number of causes, including discrimination in Earth society, the maleness of the EverQuest player base, or differences in well-being related to male and female courtship roles. We do know, however, that these differences cannot be caused by sex-based differences in the abilities of the body, since in the fantasy world of Norrath, there are none.

Suggested Citation

  • Edward Castronova, 2003. "The Price of "Man" and "Woman": A Hedonic Pricing Model of Avatar Attributes in a Synthetic World," CESifo Working Paper Series 957, CESifo.
    • Handle: RePEc:ces:ceswps:_957
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    References listed on IDEAS

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    1. Edward Castronova, "undated". "Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier," Gruter Institute Working Papers on Law, Economics, and Evolutionary Biology 2-1-1008, Berkeley Electronic Press.
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    6. repec:bla:scandj:v:81:y:1979:i:2:p:154-73 is not listed on IDEAS
    7. Edward Castronova, 2001. "Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier," CESifo Working Paper Series 618, CESifo.
    8. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709.
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    Cited by:

    1. Pierre Salmon, 2003. "The assignment of powers in an open-ended European Union," Post-Print hal-00445601, HAL.

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