Parlaying Values

        In the journal article “Parlaying Value: Capital in and Beyond Virtual Worlds”, the author Thomas Malaby discusses three forms of capital in the synthetic world. Synthetic world is another way of saying virtual world however, Malaby uses the term synthetic instead of virtual, because it shows that the world in question is made by humans. He states that the term virtual although can be seen in a positive light for giving an image, it is also a term that created the real vs unreal division.

       In his article, Malaby discusses how synthetic worlds although are unique, are not separate from the physical world. In these synthetic worlds, more specifically in games, things such as romance, friendship, and even markets can exist. Through the markets come the forces of supply and demand and as a result, the economic system of market capitalism is becoming more common. However, as stated above, that is not the only form of capital that exists. Social capital is where people make a network of connections with others, whether it is through the use of something or because of similarities. The final form of capital, cultural capital, is where people form and gain status.

        

       Human capital is the first form of capital.  Capital, Malaby states, is another way to state resource for action. The human resource of action then develops into the three different forms of capital as a product. This process of action does not only include labor, but exchange and interpretation, “market capital includes commodities and currency; social capital includes connections; and cultural capital includes competencies, credentials, and artifacts” (Malaby 2006).

      In order for readers to get a further understanding, Malaby breaks down the forms of capital and puts them into context. Market capital can be seen in products and services, basically things of monetary value. Synthetic worlds  like the ones with MMORPG format, have the ability to create shortages in the way they make and buy things. The products can also not be recreated easily. Malaby explains that is why the commodities in these worlds hold such great importance. Since they are limited and their value cannot be replicated, the items become a label of what your status is. However, these items can be used to people’s advantage. For example, people can use their connections, and or their hacking skills to obtain the product.

      Things work a little differently in Second Life. Second Life is a 3D virtual reality in which people can interact and socialize with one another.  In Second Life, users are able to create their own material. They are in charge of the material and can agree or disagree to its use, duplication and whether or not it can be transferred; as a result of the system, the distribution of the product is inexpensive. This is where cultural capital comes into play. The market value of the products depends on its cultural capital. Ultimately, a product is as important as one deems it.

      

       Social Capital is different from market capital, as it is not about commodities. Social capital is more about the relationships formed. The relationships must be kept well, as they can give one access to friendship, assistance, resources, etc.  Social capital can parlay into different types of capital. Social capital  exist in games such as World of Warcraft (WoW),  as the participants exchange materials of value like items needed for the game. They also exchange currency. They do this through a social network within the game which demonstrates how social capital can parlay into market capital. In Second Life, Malaby gives an example of Cory Doctorow who distributed his book through his community for free. Although, there is no market capital present, this example demonstrates how social capital parlays into cultural capital.

               

       Cultural capital is what an individual and or group finds to be important. This can be anything from one’s status, knowledge, to things like valuable objects. There are three forms of cultural capital: embodied, institutionalized, and objectified cultural capital. Embodied cultural capital is about one’s own personal knowledge. Institutionalized cultural capital can be seen with credentials or proof of status such as a license. Objectified cultural capital can be seen with objects which have some type of importance. For example, in games like WoW, certain items can have a certain status attached to them based on its rarity or price.

         The objectified cultural capital is an important aspect in the game Tringo. The creator of the game Kermit Quirk, uses the trading card as a tool to give out knowledge about himself and his credentials. This allows an individual to learn about skills, money, social networks and even money. One can use this virtual reality and parlay it into different forms of capital. All the forms of capital can be somehow interrelated and span off from each other. Malaby explains how the Second Life can not only be a place where different forms of capital can parlay into one another, but rather across domains. It blurs the line between the virtual and physical realm. Nonetheless, more research needs to be done on this topic in order for more to be known. The focus of the journal article was not on the difference between virtual and physical but rather human actions across different domains. By looking outside the synthetic and physical world, researchers can learn about the social processes and actions of humans. 

Sara Nur

 Malaby, T. "Parlaying Value: Capital in and Beyond Virtual Worlds." Games and Culture 1.2 (2006): 141-62.