A lot of the fuss about Virtual Goods in the past week has been stirred up by a paper released by Vili Lehdonvirta.(http://virtual-economy.org/blog/why_do_peopl

A lot of the fuss about Virtual Goods in the past week has been stirred up by a paper released by Vili Lehdonvirta.(http://virtual-economy.org/blog/why_do_people_buy_virtual_good http://virtual-economy.org/blog/why_do_people_buy_virtual_go... | PDF - http://www.hiit.fi/~vlehdonv/documents/Virtual%20item%20purchase%20drivers.pdf http://www.hiit.fi/~vlehdonv/documents/Virtual%20item%20purc...) Quickly put, the paper does a great job breaking down the attributes people find valuable in virtual goods. Jeremy Liew's only real expansion on the paper is the addition of "Building relationships", the use of virtual goods for gifting. I have to give credit to Jeremy Liew [1] for this article, he understands virtual goods probably more than any Sand Hill Rd VC does, and he puts it in laymens terms well. To get a little more in-depth on the topic, check out Vili Lehdonvirta's contributions, that's where Jeremy got a lot of the content for this article. [1] - Disclaimer: Jeremy Liew has said nice things about my apps before.