Spatial heterogeneity and non-fungible token sales: Evidence from Decentraland LAND sales

Christopher Yencha

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: This research is a first word on the real asset properties of a class of non-fungible tokens (NFTs), LAND. Although virtual, LAND exhibits real asset characteristics, satisfying conditions for hedonic price modeling. This study values access to local amenities in virtual space, showing evidence that LAND prices attenuate with distance to roads and attractions, despite access to near-instant and -costless travel. Furthermore, in demonstrating the costs of omitted variable bias due to spatial autocorrelation, this research stands as a warning to investors in and researchers of virtual property markets to treat NFTs as non-interchangeable and unique with regards to location.

Keywords: Asset pricing; NFT; Non-fungible token; Metaverse (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323000028

DOI: 10.1016/j.frl.2023.103628

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