Abstract: In this paper we report upon the Virtual Economy (VE), an Internet simulation which operated for the first time in Spring 2000 involving students at Indiana University, USA and at Napier University, Edinburgh, UK. During 2001, the VE was extended to include participants from other institutions. The main thrust of the project was to encourage active learning on the part of students in relation to the operation of stores in the VE, the consumer experience, and the interaction and practices that emerged. A further element of the project was research based, where we were interested to understand innovation in practice as it related to e-commerce. Questionnaires and diaries were used as research methods, in addition to observation and discussion undertaken by members of staff in classroom situations. While our findings from this first operation of the VE are necessarily tentative, we discuss a number of issues that will be of interest to others considering the use of Internet simulations for teaching and learning. In addition, further issues have emerged which we posit may be of significance to our wider understanding of the experience of e-consumers, and the innovative practices in which they engage. We conclude by considering some implications of this experience for library and information science educators.
