Virtual Goods, Scams, Investigative Reporting And The Media

Courtesy Techdirt  Mon, 11/09/2009 - 13:11

For many years, we've been quite skeptical of any business model in virtual worlds/social networks that rely on "buying virtual goods." That's because these are all based on artificial scarcities, and as we all know (hopefully, by now), relying on artificial scarcities for a business model is incredibly risky, especially once people realize the scarcities are artificial.

And yet, over the past few years, a number of businesses have been built on this very premise. In fact, Silicon Valley...

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