Regulation Path of Network Virtual Property Transactions from the Perspective of Law and Economics: Taking Virtual Items in Online Games as an Example

With the rapid development of the Internet, the market for trading virtual assets represented by online game virtual items has been expanding, and related criminal and civil cases have been increasing. However, there are still disputes over the legal attributes of online virtual assets, and problems such as differences in judicial practice standards and frequent transaction frauds have become increasingly prominent. Based on the theory of law and economics, this paper uses cost-benefit analysis and the C&M Framework to explore the regulatory path for online game virtual asset transactions. By studying the decisions made by transaction subjects after weighing costs and benefits in transactions, this paper introduces the property rule, liability rule, and prohibition rule under the C&M Framework to provide a layered governance solution for different transaction scenarios. Further, to solve the problems leading to transaction dilemmas, the study suggests that the ownership of online virtual assets should be clarified, judicial judgment standards should be optimized, and a cross-departmental collaborative supervision mechanism should be improved to build a regulatory path that balances efficiency and fairness. At the same time, with the property rule as the mainstay, supplemented by the liability rule to make up for market failures, and the prohibition rule as a fallback, the goal is to minimize transaction costs and achieve Pareto improvement in resource allocation, promoting the healthy development of the online virtual asset trading market.