Expert opinion on the influences of bots on the economy and gaming enjoyment in mmorpgs Version dated 29 th March 2012 Compiled by Prof. Dr rer nat. Wolfgang Broll on behalf of Bossland GmbH



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Expert opinion on the influences of bots
3.3. Bots
Bot originates from the English term robot. In the context of MMORPGs, bots are software programmes which can take over real players’ tasks. The automated repetition of tasks can be regarded as bots’ main use. Usually, bots can take over exclusively the same activities in the game which a human player can take on. Bots can therefore be very clearly differentiated from cheating or hacking (cheating by means of greater influence on the game than the game software allows). This expert opinion looks exclusively at bots which take on tasks which a human player could also do.


Prof. Dr. W. Broll
Gutachten zum Einfluss von Bots auf Spielspaß und Ökonomie in MMORPGS
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3.4. Procedure
This expert opinion focusses on a particular type of online game –Massive(ly) Multi- player Online Role-Playing Games (MMORPGs). Specifically, the MMORPG World of
Warcraft (WoW) is examined in each case as a media entertainment offering, the influences of tools on the economy and gaming pleasure in this particular game, and equally the differences between the real and the gaming economy and a possible influence of bots on these. For this, the economy in MMORPGs and their relation to the real economy are examined. This is followed by discussion of the motivations and entertainment experiences of MMORPGs. The question of the influence of bots on gaming pleasure as well as on the virtual economy and its relationship to the real economy is the main focus of these deliberations. This is followed by critical appraisal of Dr. Edward Castranova’s expert opinion of the effects of bots on WoW. The opinion concludes with a final statement on the central findings and the factual influence of bots.


Prof. Dr. W. Broll
Gutachten zum Einfluss von Bots auf Spielspaß und Ökonomie in MMORPGS
9
4. The economy in MMORPGs
4.1. The internal gaming economy
Most MMORPGs contain living virtual economies which are generally based on real economies. As with other aspects of virtual worlds, the respective gaming economy is a more or less simplified version in relation to reality. Accordingly, almost identical versions of certain economic aspects can be equally observed in a virtual economy whilst others can be depicted either only partially or not at all. This also applies specifically to WoW’s games economy.
In the virtual worlds, virtual objects and virtual means of payment must normally be acquired by playing the respective game or by achieving certain game objectives. In practice, programmed opponents are conquered in most MMORPGs to attain objects and gaming currency. These activities can be performed repeatedly and often represent a significant part of the overall game in MMORPGs. This means that these virtual goods have a certain (initially ideal) value for the players. However, many MMORPGs contain the possibility of individual trading or even offer special market platforms for this purpose, i.e. virtual goods are traded against virtual currency.
Specifically, the following transactions are possible:

Bartering of virtual objects for virtual objects

Bartering of virtual objects for virtual currency
Trading with objects and virtual (gaming) means of payment also theoretically gives them a monetary value within the respective game. This value also actually comes into existence in an economic sense through a proven supply and demand market for virtual goods (see
Castronova 2006). If players can, for example, freely trade with objects, skills, etc. for gaming currency, effects which are in part identical to reality can be observed: the virtual price is fundamentally based on supply and demand and goods can be sold at vastly inflated prices by cartels, monopolies or oligopolies, etc.
However, there is a fundamental difference between virtual and real economies: In virtual economies, virtual goods or other resources and virtual currency can often be created out of nothing without any limitations on the quantity.


Prof. Dr. W. Broll
Gutachten zum Einfluss von Bots auf Spielspaß und Ökonomie in MMORPGS
10
An example gameplay with economic components could look like this:
• The player kills one or more virtual computer-controlled opponents.
• The player receives armour and a certain quantity of money for these tasks.
• The armour can either be worn or sold. The remaining gold is also invested in the avatar’s equipment (e.g. a better weapon).
• The cycle recommences at point 1 with the player turning his attention to stronger opponents.
It is immediately clear here that the gameplay described can basically be performed without any quantitative limitation. This also means that the player can create virtual currency without any limitations by the provider, as the virtual gaming currency of gold is provided in unlimited quantities in the form of an unlimited number of virtual opponents.
There is therefore no effective money supply limit.
If steps are not taken to counteract this effect it leads to uncontrolled growth of the virtual currency and thus to inflation of the currency. For example, a devaluation of 92% of WoW’s virtual currency could be demonstrated between 2005 and 2009 % (see Heeks
2010). Admittedly, this kind of resource generation also brings a decline in prices at the same time, i.e. a deflationary effect in the area of the virtual goods thus obtained, as they are available in very large quantities and are offered correspondingly cheaply. The latter is admittedly often associated with a drastic reduction in the usefulness of these objects.
This combination is therefore also referred to as Mudflation (Ondrejka 2004). This effect is strengthened by the introduction of new goods (such as special materials or higher quality weapons, etc.) in extensions to existing MMORPGs.
It is generally the case that in case of an imbalance in an economy, appropriate measures must be taken to restore the balance. Of course, this also applies for a gaming economy. From the point of view of the game providers, there are essentially two possible strategies for this: either the inadequacies of the game‘s economy are replaced by a corresponding better model which rectifies the existing problems or at least significantly decreases their effects on the game, or trading is correspondingly more strictly regulated. The former strategy includes measures to reduce the virtual money supply again and to effectively limit its growth. Examples for the former strategy would be the raising of virtual taxes (which is, for example, practised in WoW) or the levying of fees. The second strategy includes the limitation of free trading by prohibiting the transfer of certain objects, for example,


Prof. Dr. W. Broll
Gutachten zum Einfluss von Bots auf Spielspaß und Ökonomie in MMORPGS
11
(so-called soul binding) or the increasing of costs for things which the player is forced to acquire, for example from NPCs. This was, for example, done in the Second Life (SL) virtual world by artificially increasing the price for plots of land on which the operator had a monopoly.
As individual examples of MMORPGs show (e.g. Dofus, http://www.dofus.com/de), inflation or mudflation can be kept in check effectively with a careful conception of the virtual economy in which the quantity of virtual goods and money cannot increase infinitely.

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