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January 6, 2007

Shep Korvin's crowdpricing MobVend vendor for the virtual world of Second Life

The MobVend vendor for the virtual world of Second Life has been around for about six weeks or so, but it’s interesting enough that I wanted to flag it here. A product of SL user Shep Korvin, the vendor sets prices on its items according to how many people are standing around it at a given moment. The bigger the crowd, the lower the price. You can buy at any time, but once the item hits its lowest price, the vendor sends a chat message to the crowd: you have only one minute to buy at that price before the price pops up to the top again and the process starts all over.

While some view this as a nefarious and lag-inducing promotional tool, the crowds that show up seem to have some fun. (Read more about MobVend at the SL News Network.) What I like about the product, though, is that it takes advantage of one of the unique aspects of virtual worlds: the visual presence of other avatars. Yes, you could do this on a Web page with a counter showing how many people are viewing the page at any given moment, but anyone who thinks that provides the same user experience as standing around in a crowd of avatars is being willfully obtuse. Shep has found a nice way to build an instant community out of shopaholics: imagine a crowd of 20 or 30 avatars going on a flashmobbing tour of SL stores.

This is also a nice example of something I’ll call “crowdpricing.” You could say that auctions in their various forms are another example, though those are forms that serve for the most part to drive prices up as the interested population rises. The difference is that auctions are competitive sale venues where many people are trying to obtain a single item, while this kind of crowdpricing works where many copies of an item are available. MobVend rewards shoppers for banding together. Perhaps the biggest danger is that it could drive everyone to own the same set of items.

Shep sold 50 MobVend units in its first week, so there are doubtless many more out there by now. (They’re available at his »Lucky Chair store« in SL.) I’d love to see someone adopt something like this in the real world, if they haven’t already.

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Originally posted by Mark Wallace from 3pointD.com, remediated by yatta on Jan 6, 2007 at 1:05 AM


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