I've found big problems trying to fit a theory of governance to SL because two conflicting situations exists concurrently.
Firstly, the situation resembles (Note resembles, not is!) a totalitarian government, whereby all aspects of the ‘contituents’ lives are effectively controlled by the government, they hold absolute power over their society and can rule without any real mandate or permission from the people. Developers hold the power over access to the world and control over the code.
Secondly, worlds exist in a consumer-producer relationship whereby the developer relies upon the users for their continued profits and existence yet, in SL at least, the users are also intrinsically involved in the production of the good – which is indeed never finished. So perhaps it is a more a producer-produser relationship. And lastly many parties in this world appear to be applying values associated with democracy to their experiences in world, such as individual liberty, right to protest and expression and defence of avatar civil liberties.
How might these different scenarios be consistently integrated into a model of virtual world governance?
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SL has this resemblance because it functions as a service, and service rules can only be offered on a take-it or leave-it basis.
Like the old signs say "No shirt? No shoes? No service".
You accept the service, and its rules or you don't. You're not a citizen, after all.
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