A solution for the L$ problem

That's how it works in a capitalist system! You can actually do better in times of inflation if you undercut your competitions' prices--assuming your cost of sales is not high which in SL it should not be. It is a good model, Jonas.

But, since the price of the L$ to the US$ has increased--that is indisputable--then it is inflation by definition.

Now, you may really mean to say (which I think you have in previous posts) that inflation in SL is not a real issue. That is the real point to discuss.

Good stuff, Shep!

I agree with all of your post. I especially think you're correct about the use of the term platform. While it is a platform that enables gaming, socializing, and building a business, the platform is the software, not the SL in-world realm.

Your suggestion of place is good. I would also add that it is an experience. Therefore, SL is a virtual place (or space) where users can experience many of the Internet's most powerful features but in an immersive environment. Or more simply, SL is an immersive environment.

Inflation in SL is what I am referring to. You see all the posts about it..but prices remain steady.

That's because there isn't any inflation, it's a change in the exchange rate... since the prices most people's suppliers (Linden Labs) are charging them for inventory (L$0) and production and manufacturing (again, L$0) it's in everyone's best interests to sell stuff at the price that makes the largest total gross revenue (sales * prices) regardless.

It's possible that they could start advertising like this:

"New Bloop Avatars, L$1000! That's less than the price of a sit down meal, folks!"

and take advantage of the exchange rate to try and increase their prices, but that's not the same as being forced to go along with rising prices because their own marginal costs are increasing.

I agree, Argent. I was referring to the inflating price of the L$ to the US$. I should have used the term devaluation. My mistake.

If people are concerned with the L$ losing value to the US$, they can raise their prices to earn more L$ per sale to offset the currency devaluation.

In the RW economy, currency devaluation leads to a higher marginal cost of production and sales. This causes vendors to raise their prices. A persistent increase in prices leads to inflation. So, even though there is no in-world (or very little) cost of production, inventory, and sales, there still is currency devaluation. Price increases are one method of addressing that issue.

Now, most people will not raise prices due because they have little at stake in terms of their SL business. However, the large SL businesses are starting to do just that.

By the way, do you think I can sell Bloop Avatars?

The bottom line is you haven't played SL long enough. Come back in six months, after you've made products and sold them at various stores and vendors.