Laissez Faire Virtual Banking

Eve Online is a computer game in which 300,000 players mine, manufacture goods and trade with one another (in between shooting at each other). There is a player driven economy, meaning that neither the makers of the game nor the software control how players trade with each other. There is a market on which you can place buy or sell orders at whatever price you like.

Some players got together and started a bank within the game that takes deposits and gives out loans. Some of the bank’s money got embezzled. The makers of the game say they will not intervene, or bail out the bank.

Writing in the New York Times, Rob Cox thinks there are lessons here for governments handling real bank failures.

Comments are closed.