So the announcement that in Diablo III players will be able to buy any item in the game from other players for either in-game currency or real money caused some heads to explode and people to discuss the evil of "pay to win". Apparently nobody noticed, or at least chose to keep mum about, the fact that this is exactly like EVE Online. And the EVE fans have claimed for years that this isn't evil RMT, because you buy the items from other players, not from the game company. As usual MMO commentary is highly tribal, thus if one person's favorite game company does something it is a force of good, while if another game company does exactly the same it is a force of evil.

Nevertheless I find the system in Diablo III interesting, because it is safe to assume that a lot more people will play Diablo III than EVE. The more people participate in a market, the closer the actual prices on the market reflect what could be called the "true value". And I think this true value will be an eye-opener. And that is a good thing.

I am fascinated by economic theory. Time is the ultimate resource, and what are we, then, if not economists dealing in the exchange of fun for time and money. I find there are many parallels to game design, and the tools and theories they provide are a great comfort to me. So when my good friend told me to read Predictably Irrational, I pounced on that book like a hungry hungry hippo.

The book is about Behavioral Economics. A relatively new field in the study of economics, and it starts with the assumption that human beings are not as rational as traditional economics likes to think we are, and in fact, we are irrational to the point of being—wait for it—predictably irrational (herp). It goes on to detail several major points of irrationality, and then backs them up with field experiments that are almost as much fun to read about as they are edifying.

Of the myriad of topics, that ones that stuck with me the most were, no surprise, the ones that provided clear insight into common game design problems. The topics of relativity, the power of zero, the social verses market exchange, and the power of ethics and cheating all showed me new ways to think about common problems, and I’m sure there is even more insight just out of my minds eye, waiting to be tapped. But insight for insights sake is pointless, so it’s time to share my thoughts with you. Let’s start with how the value of things is not as simple as it appears…