A Multi-User Virtual Environment - or MUVE - is an online space where vistors can navigate in a three-dimensional visual environment interacting with artifacts and each other. MUVE's were pioneered in the late 90s by a company called Active Worlds. This page describes MUVE work being undertaken at Harvard. The summary is good, but even better is the links to a slew of publications on the research. Most of them are pretty short and there is a good deal of repetition, but the upshot is that a MUVE increases student motivation, which in turn results in improved learning outcomes. Or so the studies say; I think a test of this scale is too small to begin generalizing yet.
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