Reputation as Property in Virtual Economies.

Written by Joseph Blocher.

Economists and legal theorists have long argued that real-world 
economies cannot function effectively without well-defined property 
rights. More recently, scholars have also begun to analyze at least 
three kinds of “virtual” economies: the online economies exemplified by 
eBay and other trade-facilitating mechanisms; the economies in virtual 
worlds such as Second Life and World of Warcraft; and the virtual 
reputational economies associated with MySpace and Facebook. The first 
two economies generally involve the exchange of familiar forms of 
property. But scholars have thus far failed to fully identify or analyze 
the property underlying the reputational economy. What that economy 
demonstrates, especially in its virtual form, is that reputation 
itself—social status and the respect of others—can usefully be 
understood as a form of property. Strands of this theory appear in law 
and scholarship, but they have not been tied together in a way that 
shows that reputation can be property-like even without demonstrating 
economic value. Virtual reputational economies show that reputation can 
be gained, lost, traded, protected, and shared, all in property-like 
fashion, without regard to whether it has independent economic value. In 
other words, reputation is not merely valuable; it is the new New Property.

http://yalelawjournal.org/content/view/739/1/
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