Title: Innovation in virtual social networks: the widespread of new electronic currencies and the emergence of a new category of entrepreneurs
Author: Olivier Hueber
Address: University of Nice – Sophia Antipolis, GREDEG – CNRS (UMR n 6227), 250, rue Albert Einstein, 06560 Valbonne, France
Abstract: The internet network hosts an increasing number of large synthetic worlds. These virtual worlds exhibit most of the characters we associate with the real world like interpersonal relationships, economic transactions, production of goods and services, political institutions… Inside these synthetic worlds, new economic behaviours can be studied and new entrepreneurs emerge. By focusing on the widespread of new private electronic currencies, this paper shows first the main benefits for e-money users of entering in a community of payments. Second, the economic behaviour of electronic money (e-money) users and the network externalities effects are studied. Thirdly, the phenomenon of the emergence of a new category of entrepreneurs specialised in e-money creation and the regulation of a new monetary regime are exposed.
Keywords: social networks; e-money; virtual worlds; monetary regimes; Veblen good; clearing houses; digital money; Linden dollar; innovation; electronic currencies; entrepreneurs; entrepreneurship; electronic money; social networking.
Int. J. of Transitions and Innovation Systems, 2011 Vol.1, No.2, pp.163 - 174
Available online: 11 Apr 2011