Understanding Inflation in a video game I don't understand where inflation occurs in a video games. Assuming "free market" ie unlimited new players can enter any universe at will. You will say that for an economy to form, both sides must be willing to trade. This is true, here a player trades working hours for gold (g).

Universe A:
 working for 1 hour (killing rats) rewards 1g.
 a sword can be bought for 10g.


does inflation occur ?
Time required to buy a sword will always be the same ~ 10 Hours.
New players will have to exert the same effort as old players to get a sword in universe A.


Universe B:
 Denizens of universe B can buy swords from universe A for 10g + 4g (transpotation fees).
 working for 1 hour (killing slimes) destroys a sword and rewards 15g.
 slime jars can be produced for 10g.


Does inflation occur?
Both citizens get the same profit for their hourly work = 1g per hour.
Is this what they call zero sum rule? workers sacrifice 1 hour for 1g.


Universe C:
Aliens can buy slime jars from Universe B for 10g (teleportation magic).
Alien have to eat slime jars every hour or die.
Aliens produce 20g by materializing matter out of thin air.


Does inflation occur? 
Aliens get x10 gold per hour for their work. Is this what they call inflation? But humans lack the capacity for such feat, shouldn't alien be paid more?


Universe D: modify universe C as follows: 
A weather effect blocks teleportation magic. We dont know how long it will last.
Buying slime jars from B now costs 21g.


Does Inflation or Deflation occur?
aliens now lose money instead gaining. they lose -1g even if they work. Shouldn't they have been paid more in the first place for the risk they took eg dying if they run out slime jars.
Assuming infinite years pass, and the weather condition pattern is 100% known. What should be a fair alien wage? Approximate 0 if averaged out, same as humans (1g) or more ?


Universe E: mmorpg simulation. Assume this world becomes available after 1000 years
Everyone can switch to this universe by paying 10g.
Working accumulates experience and increases productivity. Every 10 hours switch to the next level.
Lv0. Working produces 0g per hour.
Lv1. Working produces 0.1g per hour.
Lv2. Working produces 1g per hour.
Lv3. Working produces 10g per hour.
Cap. No more levels.


Does this cause inflation?
What will happen to the rest of the world if introduced.
Since the level is capped. This means that inflation also has a maximum cap = new player vs old player money profit for hourly wage.


Universe F: modify universe E as follows:
a time hole speeds aging: Creatures living in it have a finite lifespan of 1 month.


Does this cause inflation?
What should be a fair wage? Approximate 0 if averaged out, same as humans (1g) or more ?


11. Can other types of economy form in video games? Seems to me that all economies in games are "free markets" with an initial entrance fee. There is no competition. The rewards remain the same for everyone regardless of the amount of workers that enter a universe. This is because in a game goods are produced from thin air. Will markets with competition make sense ? or will new players be harshly punished for arriving to play the game too late?
You seem to think of a game where objects are obtained at a fixed rate by farming. Fix supply of work for a certain object (bc. Only a few people know where to find things to farm or are high enough level or have the right profession) and increase demand (new players coming in or more players buying in game currency for real money) then prices for the object will soar over time, people producing the object will find it easier to sell it, so much so that they will increase the price until people stop buying it. This will inflate the price of the object. Whether this will last over longer period of time then depends on many factors : ability of supply to adjust (e.g. How much are player willing to switch to farming that object?), rate of new player characters coming in, their propensity to buy the object etc. 

There are  many other ways. One example I could think of: as a player on a WoW private server with moderate population I would routinely buy all objects from the auction house that I thought of as undervalued and put them back in auction at higher prices. This allowed me to gain arbitrage profit from less careful players and also to craft and sell the same object at higher prices.