Microeconomics in the Palm of Your Hand - Part 2

The Role of Government

In a self-contained RPG such as Animal Crossing: Wild World (ACWW), I recognize two levels of "government." The first is comprised of the rules and constraints built into the design of the game. These rules are consistently applied during gameplay and may constrain the range of possible actions or effects of governmental bodies acting within the game world. Here are some of the design rules for this game which affect the game's economic system:

1. Non-player characters pay a constant price for each of the Natural Resource items (see Part 1) that the player sells
   
2. Non-player characters pay the player 1/2 of the original selling price for any finished goods (clothing, furniture and accessories), farming items (seeds and saplings) and Tools that the player sells
   
3. Non-player characters charge a constant price for finished goods, farmning items and Tools on non-sale days
   

This is a highly constrained system - with the government setting a simultaneous floor and ceiling on the price of all goods. In a less constrained system, sale and purchase prices would be allowed to vary based on demand - e.g. if a player purchases lots of seeds to plant flowers the price should increase over time, as well as based on supply - e.g. a player should get a higher price for selling a Bitterling during a season other than Winter.

The second level of government consists of the game characters who fill roles that are typical of real world governments. In ACWW, they are as follows:

• a Checkpoint which controls players entering and leaving town, and provides a lost and found service (from which players can occasionally obtain items for free)
  
• a Town Hall which mails letters - for free even!, recycles trash, hosts special events and accepts contributions to help a disadvantaged neighboring town (essentially a money sink which eventually earns special items for the player)
  
• a Museum which accepts item donations for its displays (alternatively you can sell these fossils for cash at the local store) and provides free services for identifying your fossils and creating your own constellation
  
• the Happy Room Academy (HRA) which rates the way that you've decorated your home (stimulating the purchase of finished goods to complete matched sets and increase the value of your furnishings in order to get a higher rating)
  

Be sure to tune in next time when we discuss the financial services offered in this game and their parallels to the real world.