Currency Emergence in Absence of State Influence : The Case of Diablo II

This paper presents a case study of the emergence of currency from a barter economy, a process discussed theoretically by Menger (1892). In particular, we use this case study to attempt to adjudicate between chartalist and emergent theories of currency formation. Using the records of an online message board dedicated to facilitating trades within the game, we document the emergence of currency and its stability over time, and note that the environment lacks the sort of agent required to cause a currency to emerge in the chartalist theory