Title :
Official reverse exchange model of virtual money
Author :
Jingpei Bi ; Huaying Shu
Author_Institution :
Sch. of Econ. & Manage., Beijing Univ. of Posts & Telecommun., Beijing, China
Abstract :
With the development of the network, virtual economy is booming, but the absence of reverse exchange mechanism of virtual money restricts the virtual economy. In this paper, first we discuss the current situation and the negative effect resulted from the third-party platform on the profit of issuers and the virtual economy, then by analyzing the advantages and disadvantages of the existed reverse exchange mechanism, we put forward a new model and point out that under the condition of profit maximization, the issuers will not infinite offering virtual currencies, and the ratio of the fiat money exchange rate to the material object exchange rate is equal to the ratio of the corresponding exchange amount of each way.
Keywords :
electronic money; foreign exchange trading; fiat money exchange rate; material object exchange rate; official reverse exchange model; profit maximization condition; reverse exchange mechanism; third-party platform; virtual currencies; virtual economy; virtual money; Analytical models; Business; Communities; Exchange rates; Games; Online banking; exchange rate; reverse exchange; virtual money;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2015 12th International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-1-4799-8327-8
DOI :
10.1109/ICSSSM.2015.7170200