Abstract
Virtual worlds have seen tremendous growth in recent years. However, security and privacy risks are major considerations in different forms of commerce and exchange in virtual worlds. The studies of behavioral economics and lessons from markets provide fertile ground in the employment of virtual worlds to demonstrate study and examine behaviors. In this chapter, we address user and organizational concerns about security and privacy risks by exploring the relationships among risk, perception of risk, and economic behavior in virtual worlds. To make their interaction more effective, we recommend organizations to understand perceptions of risk in virtual worlds and then implement policies and procedures to enhance trust and reduce risk. Such understanding depends in turn on the multidisciplinary nature of cyber security economics and online behavior