[tt] [technoliberation] Different world, same rat-race: Consumerism in Second Life

Eugen Leitl <eugen at leitl.org> on Fri Sep 14 09:15:32 UTC 2007

----- Forwarded message from Michael LaTorra <mlatorra at gmail.com> -----

From: Michael LaTorra <mlatorra at gmail.com>
Date: Thu, 13 Sep 2007 17:21:06 -0600
To: WTA Talk <wta-talk at transhumanism.org>
Cc: technoliberation at yahoogroups.com
Subject: [technoliberation] Different world, same rat-race: Consumerism in Second Life
Reply-To: technoliberation at yahoogroups.com


   INTRO: Perhaps we should not be surprised that people like buying the
   same sorts of things in a virtual world that they do in "meat space":
   clothes, cars, McMansions. But what really surprised me is how they
   paid for stuff. People who could easily afford these things by paying
   US dollars (most items cost from a few pennies up to few dollars,
   except for real estate [fake estate?]) actually seem to prefer to work
   at some low-paid, in-world job in Second Life so they can spend their
   hard-earned Linden Dollars on stuff. -- Mike



   ...............................................



   "Even in a Virtual World, 'Stuff' Matters"
   Ed Regan for The New York Times

   [1]http://tinyurl.com/373ghw

   Janine Hawkins with her Second Life avatar Iris Ophelia. In the
   virtual world, Ms. Hawkins earns Linden dollars and spends them
   freely.
   By SHIRA BOSS
   Published: September 9, 2007

   IT'S payday for Janine Hawkins. Not in the real world, where she is a
   student at Nipissing University in Ontario, but in the online world of
   Second Life, where she is managing editor of the fashion magazine
   Second Style.

   Linden Lab
   The fashion-conscious female avatars in Second Life often shop for a
   provocative look.
   Ms. Hawkins, who in Second Life takes on the persona of Iris Ophelia,
   a beauty with flowing hair and flawless skin, keeps a list of things
   she wants to buy: the latest outfits from the virtual fashion mecca
   Last Call, a new hairstyle from a Japanese designer, slouchy boots.
   When she receives her monthly salary in Linden dollars, the currency
   of Second Life, she spends up to four hours shopping, clicking and
   buying. After a year and a half, she owns 31,540 items.

   Living it up in Second Life is a break from Ms. Hawkins's part-time
   job as a French translator, but she works just as hard in the virtual
   world.

   Last month, she earned 40,000 Linden dollars ($150), for interviewing
   designers, arranging fashion shoots and writing about trends in Second
   Life, called SL by frequent users. "I usually spend what I earn," Ms.
   Hawkins said. "It's entertaining."

   It also says a lot about the real world, especially when it comes to
   earning and spending money.

   When people are given the opportunity to create a fantasy world, they
   can and do defy the laws of gravity (you can fly in Second Life), but
   not of economics or human nature. Players in this digital, global game
   don't have to work, but many do. They don't need to change clothes,
   fix their hair, or buy and furnish a home, but many do. They don't
   need to have drinks in their hands at the virtual bar, but they buy
   cocktails anyway, just to look right, to feel comfortable.

   Second Life residents find ways to make money so they can spend it to
   do things, look impressive, and get more stuff, even if it's made only
   of pixels. In a place where people should never have to clean out
   their closets, some end up devoting hours to organizing their things,
   purging, even holding yard sales.

   "Why can't we break away from a consumerist, appearance-oriented
   culture?" said Nick Yee, who has studied the sociology of virtual
   worlds and recently received a doctorate in communication from
   Stanford. "What does Second Life say about us, that we trade our
   consumerist-oriented culture for one that's even worse?"

   Second Life, a three-dimensional world built by hundreds of thousands
   of users over the Internet, is also being used for education,
   meetings, marketing and more obvious game playing. It's a wide world
   with a lot going on, in multiple languages, and it can be real-life
   enhancing for populations who are isolated for physical, mental, or
   geographic reasons. But as a petri dish for examining what makes many
   of us tick, Second Life reveals just how deep-seated the drive is to
   fit in, look good and get ahead in a material world.

   Many residents have lived the American dream in Second Life, and built
   Linden-dollar fortunes through entrepreneurship. In what could have
   been an ideal world, however, or one where anyone could be a Harry
   Potter, Second Life has an up-and-down economy, mortgage payments,
   risky investments, land barons, evictions, designer rip-offs, scams
   and squatters. Not to mention peer pressure.

   "Second Life is about getting the better clothes and the bigger build
   and the reputation as a better builder," said Julian Dibbell, author
   of "Play Money," which chronicles his year of trying to make a living
   by trading virtual goods in online games. "The basic activity is still
   the keeping up with the Joneses, or getting ahead of the Joneses, rat
   race game."

   TO have a Second Life, one needs a computer, the Second Life software,
   and a high-speed Internet connection. You use a credit card to buy
   Lindens, and Lindens earned during the game can be converted back into
   dollars via online currency exchanges. Players start by choosing one
   of the standard characters, called an avatar, and can roam the world
   by flying or "teleporting" (click and go). Nobody can go hungry, there
   is no actual need for warmer clothes or shelter, and there is much to
   do without buying Lindens.

   But walking around in a standard avatar, when there are so many ways
   to buy a better appearance, is like showing up for the first day of
   school dressed differently than all the other kids. You stick out as
   different, as an SL "newbie."

   "It's hard not to fall into that," Mr. Yee said. "There are shops
   everywhere, so it's easy to say, 'Oh, O.K., I guess I'll get a better
   pair of jeans.' "

   Second Life was started in 2003 by a Silicon Valley techie inspired by
   a sci-fi novel, "Snow Crash." It is owned by a private company called
   Linden Lab. The original idea of the game was to unleash creativity.
   Residents don't have to wear the latest fashions; they don't have to
   look or act human at all. They can take any animal, robotic, or
   inanimate form they want.

   And while there is a minority population of animal characters, and
   wearing butterfly wings is currently in vogue for humans, for the most
   part the population is young women bursting from their blouses and
   young men bulging with muscle. (Underneath the clothes are cyber
   genitalia, sold separately. Mark Wallace, a blogger who writes about
   Second Life, explained that the parts are not fashion accessories but
   rather "a functional appliance" for, ahem, entertainment purposes.)

   While a frequent criticism of Second Life is that spaces are often
   empty and that there's "nothing to do," a crowd can be found at the
   mall, just as it can in suburbia. For example, the Xcite! store, which
   sells body parts, is "always crawling with avatars," said Mr. Wallace,
   co-author of a forthcoming book, "The Second Life Herald." Fashion is
   big business in Second Life, along with entertainment and land
   development.

   Big corporations like Toyota have set up islands in Second Life for
   marketing. Calvin Klein came up with a virtual perfume. Kraft set up a
   grocery store featuring its new products. But those destinations are
   not popular.

   "These brands that have this real-world cachet are meaningless in
   Second Life, so most are ignored," said Wagner James Au, who blogs and
   writes books about Second Life. "Just showing up and announcing 'We're
   Calvin Klein' isn't going to get you anywhere." American Apparel
   closed its virtual clothing shop, and Wells Fargo abandoned the island
   it had set up to teach about personal finance.

   Second Life exclusives do exist: A magic wand was a hot item at one
   point, and the sex bed is currently in demand. ("If you lie on it with
   more than one avatar, it's like you're in a porn movie," Mr. Au
   explained.)

   But the more mundane items are what really drive the economy: clothes,
   gadgetry, night life, real estate. "People buy these huge McMansions
   in Second Life that are just as ugly as any McMansions in real life,
   because to them that is what's status-y," Mr. Wallace said. "It's not
   as easy as we think to let our imaginations run wild, in Second Life
   or in real life."

   Mitch Ratcliffe, an entrepreneur and blogger, was an early resident of
   Second Life and built a house with a lake. But he was soon
   disillusioned with the upkeep involved with owning the property. "I
   don't see why I would want my second life to be about the same
   striving and profit that my first is," Mr. Ratcliffe wrote in a blog
   entry about his Second Life adventures. He eventually reincarnated
   himself as Homeless Hermes.

   "People come by, see the user name and tell me how sorry they are that
   I don't have a home. Why?" he wrote. "It's very middle class, very
   staid in the way economic stigma is attached to a failure to get to
   work." In the meantime, Homeless Hermes took up buying and selling
   virtual land and has pocketed the equivalent of $800.

   Land is the biggest-ticket item in Second Life, with Linden Lab
   selling islands for $1,675, plus a $295-a-month maintenance charge.)
   Catherine A. Fitzpatrick, a Russian translator in New York who in
   Second Life is a landlord known as Prokofy Neva, got into the game
   three years ago and now owns hundreds of apartment buildings, houses
   and stores that she rents out to about 1,500 tenants who pay from
   $1.50 a month to $150 a month. She takes several hundred dollars a
   month out of the game to pay real-world bills. Prokofy Neva herself
   does not have a house. "If I did, I would rent it out," she said. "Why
   not make money from it?"

   She has, however, turned over virtual acreage for a land preserve and
   public use. She and an architect friend were initially entranced by
   the idea of creating artistic homes that could defy gravity, but they
   discovered that there wasn't demand for that in Second Life.

   "The average person wants a ranch house or a beach house," she said.
   "They don't want even Frank Lloyd Wright." (She added, "These people
   are my customers, so I respect that.")

   Some residents do wear grunge clothing itself a status symbol in
   Second Life because of the difficulty of replicating ripped and
   stained clothing digitally. But the largest slice of the population
   follows the crowd, and the crowd is not dressing up as dragons.

   "The money is in the real-looking stuff: making skins with red lips
   and smoky eyes, and stiletto boots," said Ms. Hawkins, the Second Life
   fashion writer. First comes something popular, then the knockoffs.
   Soon everyone has one. "People go for similar looks and similar
   things," she said.

   In Ms. Hawkins's online closet are avatars that let her move around as
   a rubber ducky or as a fruit salad encased in gelatin. But those
   identities are novelty items that usually stay on the shelf. When she
   goes out in virtual public, Ms. Hawkins usually takes the form of Ms.
   Ophelia, who has more than 250 pairs of shoes.

   Items are real-world cheap an outfit usually costs $2 to $5 but they
   can add up quickly. "It's so easy to buy something, you don't realize
   how much you're spending," said Carrie Mandel, a homemaker and mother
   in Chicago who spends two work days a week as well as evenings and
   weekends on her Second Life business, selling pets.

   One coveted status symbol in Second Life is a souped-up muscle car
   called the Dominus Shadow. It currently costs 2,368 Linden dollars,
   about $9 at the current rate of 268 Linden per dollar. Many players
   pay that much every month for premium membership that lets them own
   land, and all are sitting at computers with high-speed Internet
   access. So why don't more people treat themselves to the prized
   possession of a Dominus?

   "It's expensive in-world," said Daniel Terdiman, author of the
   forthcoming book "Entrepreneur's Guide to Second Life." "You don't
   think of how much things cost in real dollars; you think in Linden
   dollars. When something is expensive, even though it comes out to a
   few dollars, a lot of people don't want to spend that much money."

   Although Linden dollars can be bought with a credit card, there is
   evidence that the in-world economy is self-sustaining, with many
   players compelled to earn a living in-world and live on a budget.

   Surprisingly, many take on low-paying jobs. They work as nightclub
   bouncers, hostesses, sales clerks and exotic dancers for typical wages
   of 50 to 150 Linden dollars an hour, the equivalent of 19 to 56 cents.
   A recent classified ad stated: "I am looking for a good job in SL. I
   am sick of working off just tips." This job seeker listed potential
   occupations as landscaper, personal assistant, actor, waitress and
   talent scout.

   Second Life players are evidently discovering what inheritors have
   struggled with for generations: It's not as much fun to spend money
   you haven't earned. Apparently, despite the common lottery-winning
   fantasies, all play and no work is a dull game, after all.

   "People don't take jobs just for the money," said Dan Siciliano, who
   teaches finance at Stanford Law School and has studied the economies
   of virtual worlds. "They do it to feel important and be rewarded."

   And to buy more things. "A lot of exotic dancers want to become
   models, so they can earn more money to buy more clothes," Ms. Hawkins
   said.

   It's not just vanity that drives people to dress up in Second Life.
   It's also seen as good for business. Ms. Fitzpatrick, the landlady,
   says she doesn't really care about how her avatar looks. But she cares
   about what prospective tenants think. "I felt I had to go, finally,
   and buy the hair and the suit," she said, "or my customers might think
   I'm too weird."

   Appearances count in Second Life's financial world, too. Banks and
   stock exchanges are housed in huge, formal structures draped in marble
   and glass. "People in the banking industry wear shiny silver suits and
   are absurdly tall and have hired a couple people to walk behind them
   in black suits with ear bugs and shoulder holsters," said Benjamin
   Duranske, a lawyer who blogs about legal issues related to the virtual
   world.

   THE stock exchanges and banks in SL are imposing, but they are
   unregulated and unmonitored. Investors fed Linden dollars into savings
   accounts at Ginko Financial bank, hoping to earn the promised
   double-digit interest. Some did, but in July there was a run on the
   bank and panic spread as Ginko A.T.M.'s eventually stopped giving
   depositors their money back. The bank has since vanished. With no
   official law and order in Second Life, investors have little recourse.

   Robert J. Bloomfield, a behavioral economist at Cornell University,
   studies investor behavior in the real world and recently became
   interested in how investors behave similarly in Second Life. "We know
   the little guy makes lots of dumb mistakes," Professor Bloomfield
   said. "They tend to be overly impressed by the trappings of success.
   We see that magnified in Second Life."

   Some Second Life residents are calling for in-world regulatory
   agencies the user-run Second Life Exchange Commission has just begun
   operating and some expect real-world institutions to become involved
   as the Second Life population and economy expands. "It's a horse race
   as to whether the I.R.S. or S.E.C. will start noticing first," Mr.
   Duranske said
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Eugen* Leitl <a href="http://leitl.org">leitl</a> http://leitl.org
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