Duffy: How Not to Experiment in Virtual Worlds
Economist John Duffy of University of Pittsburgh went to an experimental lab in Second Life and came away unconvinced. Some thoughts:
* The virtual lab he visited was a replication of a real-world lab. We’ve learned, however, that using virtual world technology to simply replicate a real-world thing is usually counter-productive. The utility of virtual worlds does not lie in their ability to re-do, in virtual form, what we do in the real world.
* He carries with him some honored norms about what an economics experiment must be. Participants must not know what the experiment is about, for example, so you ought to ask every participant “Are you an experimental economist?” and exclude them if they are. Otherwise they’ll recognize that they are in a test of backwards induction or whatever. Duffy did not face that kind of question, nor anything that would allow the screening of participants based on expertise. There were other issues, other ways in which an attempt to replicate a real-world econ experiment, in traditional form, simply breaks when placed in a virtual environment.
* He properly noted that the incentives (couple hundred Lindens) are very low in terms of cash value. Why would anyone think hard in return for a quarter? However, this raises a debate about the utility of the Linden dollar. Some people seem highly invested in the state of their virtual things, despite low real-world values. This in turn raises big questions in economics about how things, utility, and happiness relate. Punt.
* He was able to lie about his age, a problem for the internet at large.
via Terra Nova: Duffy: How Not to Experiment in Virtual Worlds.