Microeconomics in the Palm of your Hand - Part 1

Animal Crossing: Wild World (ACWW) was recently released for the Nintendo DS. Once I logged enough hours (don’t ask!) to sufficiently explore much of what this game world has to offer, I found it to have a range of economic elements and factors that I wouldn't normally expect from a handheld game. Since this game can also be played with multiple players over Nintendo’s WiFi gaming network, I'm anxiously awaiting a number of new virtual world transaction options and variants to emerge. But I’m getting ahead of myself.

This post is Part I in a series on the virtual economics of ACWW (we loves our acronyms, don’t we!). I don’t know at this point just how many total parts there will be as that's left to the extent of what I can delve from this game as my analysis progresses. Each part may not come one right after the other because there will probably be intervening posts to cover current topics. Don’t take that as a sign that I have abandoned this series.

For now, here’s an introduction to the economic elements in the game and some initial comments to provide details and stimulate your own thought.

Currency: Bells

Market type: Goods Market (services and finished goods and products are exchanged)

The three major factors of production:
Land (Natural Resources): Fish, Fruit, Bugs, Seashells, Buried items such as fossils and gold

• can increase long-term Fruit profits by temporarily diverting some “production” time to planting and watering
  
• prices are based on rarity, for example coconuts grow 2 to a tree and each is worth more than a pear which grows 3 to a tree
  
• items (fruit, fish, e.g.) are seasonal, so the relative “productivity” curve of each item will vary depending on which items are in season
  

Labor: Your characters. A player can have up to 4 different characters.

• players can differentiate character functions such as one to collect and shells and catch fish, another to capture and sell bugs, another to hold items for future use (also known as a “mule”), etc.
  
• characters also serve the purpose of carrying and transporting items, for example, catching fish and transporting them to Tom Nook’s shop to sell (convert) them for bells. The transportation and transaction (trade/sale) time impacts productivity
  

Capital (Tools): Fishing Pole, Shovel, Net, Watering Can

• one-time purchases
  
• each uses up a character’s carrying slot, increasing his transportation costs
  
• there are no maintenance (e.g. repair or replace) costs for these items
  

That's it for today. Stay tuned for more exciting chapters!