30) BGS Economy is what regulates the disposition of resources
An expansion proposal for the BGS and solution of other problems of the game (low use of Fleet Carriers markets, linking to Powerplays only for the item search, existence of structures without a defined function, such as settlements…). One of the trickiest elements in game design is to create a sustainable, balanced economy for your players. This affects all kinds of games, even where the is little overt resource management. However, in the era of Games-As-A-Service where we want to sustain the player experience for extended periods of time the design of your economy becomes hugely important...
30.1) The BGS is focused on the issue of changing power and system influence of factions in response to player or a group of players behavior. Every station has its own demands and supply that change dynamically. But, there is no expressive impact on the prices of goods and commodities. Money has no relevance to the BGS and that's a waste. There are many, many commodities and minerals in the game that virtually never see worthwhile prices. Because of this, they are almost never mined or traded.
30.2) Today, faction maintenance/conflict is something disconnected from the economy. Wars and disputes are fought without concern for ship losses, damages, locations to be conquered... Ship prices and reacquisition insurance are stable values, because the economy is disconnected from the BGS. Players aren't shy about keeping gigantic private fleets stationed at space bases. As with fleets, space in space must cost money.
30.3) There is no reason for the existence of the settlements, nor an explanation for the position of the bases. The proposal here is to link a new dimension to the conflict between factions - money. Money can provide space to allocate ships to faction players, “rent” specialized players from other factions for combat or mining / place additional ships and NPCs on battlefields / buy weapons, base and infrastructure protections, system specializations, protect territories, invest in linked factions, etc... Faction owners are no longer simply grouping players and start to have access to economic reports and act as administrators and military strategists.
30.4) In this respect, EVE Online's economy is the best benchmark... It has raw material mining systems and space factories that produce everything available in the game; from components for ships, weapons, even ammunition. All this, in the internal commodity marketplace. In addition, distribution centers for material shipments are also part of the many crucial processes to drive the game's huge internal economy.
30.5) Not to mention that manufacturing, storage, logistics and trading systems are buildings to be developed in which air or land missions that affect the economy of the owning faction and nearby systems can be carried out. Missions with the task of “Sabotage/Repair” in a fuel storage area, can influence the price of resupplying ships in the system, for example. Or raising too much the price of a raw material base of the production chain of a product, modifying the cost margins, profit, the demand and the prices of products in the nearby systems. They can also be bombed...
30.6) Following a “simple system” of Supply and Demand, with characteristics similar to real life, leaders and high-ranking officials of the factions would be offered weekly economic reports (synchronized to Powerplay), dealing with matters such as: Service fees, production vs. Destruction of materials, Transaction values by category, depending on the Powerplay situation (each of these nations have their own rules: laws, taxes, professions, ships, hundreds of players, production, bounty hunters, Commodities, etc... But , mainly, different ways of acting.
30.7) This will undoubtedly bring about additional problems typical of online games: bots that do human work autonomously, cheaters, and others that can cause, for example, oversupply and economic inflation/deflation in domestic markets. But it opens the door to the use of the economy as a weapon of combat, through the planning of actions to modify prices in enemy markets, increasing the complexity of the BGS.
30.8) Just as many countries have started to invest obscene amounts of money in weapons, military vehicles or infrastructure, without considering the costs of maintenance, modernization and retrofit. Faction leaders must balance revenue from their system operations with infrastructure and military costs. They can establish paid special missions (mining, logistics, combat, bounty hunting...) and this influences the economy of the faction and the target, as well as the surrounding systems, as there will be variations in the supply and demand of these systems.
30.9) Loans can be made between factions for the construction and development of production, storage, mining, marketing or defense infrastructure. The economy can be used as a weapon of war… Large factions can make use of “debt traps” to conquer territories, that is, make large loans against real guarantee of entire structures or systems, to factions with small economies, which will not be able to pay The payment. By executing the guarantee, the factions become the owners of these structure, revenue and territories.
30.10) How do I propose to deploy?
30.10.1) Definition of production inputs (Qi)- It is necessary to establish production chains for all existing items in the game… costumes, weapons, ships, equipment, etc. How much of each mineral, material, part is used for a suit “X”/ship “y”… for all items?
30.10.2) Definition of production cost (Qp) – Quantities of labor and energy used in the manufacture of the good.
30.10.3) With the definition of the bill of materials (BOM - is a centralized source of information containing a list of items used to manufacture a product and the instructions on how to do so. Often shown in a hierarchical way, a bill of materials (BOM) lists the finished product at the top, down to individual components and materials).
30.10.3.1) With the quantities used to manufacture each item in the game defined, considering:
Pi - Local price of production inputs
Pp – Local price of production cost
One can define a price equation per item, for a locally produced good, as the sum of the costs of the production chain:
Item Price (PI) = ∑ (Qi*Pi + Qp*Pp)
When the good available on the market comes from another system, the distance (Qd) and the price of fuel (Pc) will be added to the equation:
Item Price (PI) = ∑ (Qi*Pi + Qp*Pp + Qd*Pc)
The equations apply to goods and equipment as well as services (supply, repair, medical treatment, landing permit, per diem/stay...). I won't consider depreciation, salvage value and useful life as technologies capable of traveling the Galaxy and folding space must have extremely long useful lives.
These equations indicate the price for the good to be traded without profit (cost price). Fees/taxes can be arbitrated by factions or Powerplays and profit margins for production and trading locations. Added to the prices are storage services. With these equations defined for the products of a market, PI varies according to the cost components (Pi,Pp,Pc) and these, in turn, fluctuate according to the Law of Demand and Supply.
30.10.5) It is necessary to specify the production time of each item based on the existence of all the components of its equation, considering that each good and each part of the good produced faces the following logistical steps:
SUPPLIERS => WAREHOUSES => INDUSTRIAL PLANTS => DISTRIBUTION CENTERS => CUSTOMERS
30.10.5.1) A good, when sold to the customer, triggers a PRODUCTION ORDER THAT RUNS THE LOGISTICS STEPS IN REVERSE FLOW. For example, if a ship is sold…
CLIENT (SHIP) => DISTRIBUTION CENTERS (SEND PRODUCTION ORDER TO SHIP TO REBUILD LOCAL INVENTORY) => INDUSTRIAL PLANTS (ARE ACTIVATED TO PRODUCE ALL NECESSARY ELEMENTS FOR CONSTRUCTION OF THE SOLD VESSEL, AS WELL AS ASSEMBLY OF THE SHIP ITSELF AND REQUIRE MATERIALS DOS WAREHOUSES) => WAREHOUSES (SEND MATERIALS TO INDUSTRIAL PLANTS FOR MANUFACTURE OF COMPONENTS AND THE SHIP ITSELF AND REQUEST REPLACEMENT OF MATERIAL INVENTORY FROM SUPPLIERS) => SUPPLIERS (SEARCH FOR THE DEMANDED INPUTS)
30.10.5.2) If the installation is in a system that is in a “normal” situation, production times can be considered stable, but transport and storage times are not negligible and suffer deviations from a normal distribution.
30.10.5.3) If the installation of the logistic chain is in an abnormal system… “at war”, for example, its production can be delayed or paralyzed, harming stocks, increasing prices and supply times from that point in the logistic chain. If the situation occurs with food, systems have suffered price hikes and starvation. If ships or tritium, there will be shortages and price hikes, which can hurt a faction that is in conflict with an invader if the developers define that factions have to “buy ships/npcs for war”. 30.10.5.4) Supply and Demand are measured through the weekly relationship, synchronized with BGS, of the accumulation of PRODUCTION ORDERS within the Logistics Chains of each system.
*** And here we have the FLEET CARRIER markets BUG, which imposes additional fees on merchandise, competing with orbital bases that ALWAYS HAVE LOWER PRICES – FLEETS MARKETS BECOME USELESS.
10.30.6) DEMAND
30.6.1) The demand for a certain good (Dx) is given by the quantity of goods that buyers want to acquire, in a certain period of time. Economists consider as the most relevant factors for Dx: the price of the good; consumer income; the price of other goods (substitute and complementary); consumer habits and tastes. Thus, the demand curve for a good is descending from left to right, evidencing the Law of Demand – THE QUANTITY SEQUIRED OF A GOOD “X” VARIES INVERSELY TO THE BEHAVIOR OF ITS PRICE.
30.6.1.1) Economists justify such demand behavior in terms of two effects:
a) Income effect – when the price of the good increases, the consumer becomes, in real terms, poorer and will tend to reduce the consumption of the good (or the opposite); and
b) Substitution effect – if the price of a good increases and other goods (substitute or complementary) remain constant, the consumer will seek to substitute his consumption for the similar one (or the opposite);
10.30.7) THE OFFER
30.10.7.1) The supply of a certain good (Ox) is the quantity that sellers want to offer to the market, in a certain period of time. Economists consider as the most relevant factors for Ox: the price of the good; the price of inputs used in production; The technology; and the price of other goods (substitutes and similar). Thus, the supply curve for good X is a direct or increasing function of price. The higher the price, the more sellers will offer to the market.
10.30.8) MARKET BALANCE IN PERFECT COMPETITION
30.10.8.1) The equilibrium price is defined as the price that equates the quantities demanded by buyers and the quantities supplied by sellers, in such a way that everyone is satisfied:
30.10.8.2) A mathematical example… Assuming that the equations below show the demand and supply functions of good “X”:
QDx = 280-4Px (Demand)
QOx = -20+2Px (Offer)
280-4Px = -20+2Px
300 = 6Px
Px = 50 (Equilibrium Price, which equals the quantity supplied and demanded of the good)
10.30.9) SCHEDULE
10.30.9.1) The theoretical definition of a market in perfect competition presupposes the non-intervention of players or developers in the setting of prices. However, it is possible that, for some reason, faction leaders, high-ranking members (responsible for the development of faction areas) or developers, find it convenient to set prices. In this condition, if the value is fixed at a price lower than the equilibrium price, a shortage of the good will occur.
10.30.9.2) In this case, considering that the adequate solution for scarcity is not possible, as the prices are fixed. There will be no alternative but to manage scarcity. This can take the form of reduced influence/morality (queues in markets and supply systems), such as the appearance of the product on the black market with a price greater than equilibrium (premium). Another way of managing scarcity is the imposition of rationing, in which each consumer can only purchase a certain quota of the product so that everyone can be served.
30.11) CHANGE IN THE BALANCE MARKET PRICE DUE TO DISPLACEMENTS IN THE SUPPLY AND DEMAND CURVES.
30.11.1) The Demand Curve (Dx) shifts in relation to its original position when there is a change in: consumer income (Y); the price of other goods (Pz); consumer habits and tastes.
30.11.1.1) CHANGE IN CONSUMERS' INCOME (Y)
30.11.1.1.1) NORMAL GOODS – Those whose consumption increases as the player's income rises (special ammunition, energy cells with increased durability, improved suit shield cells…). Consider the following worksheet in which QPx (amount demanded at the old income level) and QP'x (amount demanded at the new income level).
Px: 10, 11, 12, 13
QPx: 100, 90, 81, 76
QP'x: 110,100,91.86
The new demand curve (D'x) lies to the right of the old demand curve (Dx), indicating that, for each possible market price level, consumers will be willing to purchase larger quantities of good “x”, because they have a higher income than before.
30.11.1.1.2) INFERIOR GOODS – These are goods whose demand decreases when the consumer's income level increases/or increases when the consumer becomes poorer (logic contrary to that of normal goods).
30.11.1.2) CHANGE IN THE PRICE OF OTHER GOODS (Pz)
A certain good “Z” can have the following relationships with an good “X”:
Z is a consumer good independent of X – in this case Z has nothing to do with demand for X. Changes in demand for one do not affect the other.
Z is a substitute for X – In this case, the increase in consumption of Z implies a reduction in the demand of X, or the opposite… In other words, the shift of the demand curve from Z to the right, implies the shift of the curve from X to left, in the opposite direction.
Z is complementary to X – These are goods whose consumption is done simultaneously, they are associated in some way (the components of a product, costume, ship…). In this case, shifting the curve of one can cause the curves of all goods in the production chain to shift in the same direction.
The system proposed here is structured in this type of relationship. There will be materials needed for various items, as well as extremely specific items.
30.11.1.3) CONSUMERS' HABITS AND LIKES – Variable influenced by advertising campaigns (shifts demand to the right) or by defamatory campaigns (shifts demand to the left).
30.11.1.4) Mathematically… Assuming the following example:
QDx = -2Px + 0.05Y -1.5Pz
*** The sign of the income coefficient (+ 0.05Y) is positive, so if income increases, the QDx value will also increase… So good X is normal!
*** The sign of the coefficient of the price of another good (-1.5Pz) is negative. If the price of another good increases, the demand for X decreases, so X and Z are complementary. If it was positive, they would be substitutes.
*** Px is negative, indicating an inverse relationship between price and quantity demanded (so X is not a Giffen good).
If consumers' income (Y) is 1000 and the price of another good (Pz) is 8, we have:
QDx = -2Px + 0.05*1000 – 1.5*8
QDx = 38 - 2Px
If consumers' income (Y) were 1200, the curve shifts to the right:
QDx = -2Px + (0.05*1200) – (1.5*8)
QDx = 48 - 2Px
THE INCOME OF CONSUMERS (Y) EXISTING IN A FACTION IS A FUNCTION OF THE BALANCE OF INFLUENCES BETWEEN FACTIONS (ECONOMIC AND SECURITY STATES).
30.11.2) DISPLACEMENT OF THE OFFER CURVE
30.11.2.1) The supply curve shifts in relation to its original position when there are variations in the price: of the inputs used in production; The technology; and the price of other goods (substitutes and similar). Suppose an increase in the price of inputs used in production (BOM – Bill of Materials) by “1”. Producers getting more expensive by “1”, to manufacture the same quantities, will want to raise the price of the product by “1”, so that their profit remains stable (Shift of the supply curve to the left). Changes in the price of “X”, do not cause a shift in the demand curve, the change in value occurs, in this case, ALONG THE CURVE ITSELF.
*** THE GOOD IS NEVER SOLD AT A LOST! AT THE MAXIMUM, WITH ZERO PROFIT. IF THE PRICE INDICATED FOR THE QUANTITY DEMANDED IS LESS THAN THE COST PRICE, IT LEAVES THAT MARKET.
*** Faction Quest VALUES ARE A FUNCTION OF Faction Balance! WOULD NOT BE LIMITED TO 50 MILLION. DEBTOR FACTS MUST MAKE LOANS, SUBJECT TO DEBIT TRAP, OR INFLUENCE IMPACTS TO OTHER FACTS AND CITIZENS FLIGHT.
30.12) WHEN THE MARKET FOR A POWERPLAY/REGION IS NO LONGER A PERFECT COMPETITION
30.12.1) Monopoly – is the market characterized by the existence of a single seller. Monopoly can be legal (secured by law) or technical (secured by technology – a single company owns the cheapest form of manufacturing).
30.12.2) Oligopoly – is the market in which there is a small number of sellers or in which, despite the existence of a large number of sellers, a small portion of them dominates most of the market.
30.12.3) Monopsony – is a market in which there is only one buyer.
30.12.4) Oligopsony – is the market characterized by the existence of a small number of buyers or in which, although there is a large number of buyers, a small part of them is responsible for a very expressive portion of the purchases that occur in the market.
30.12.5) Monopolistic Competition – this is a market in which, despite having a large number of producers (and therefore being a competitive market), each one of them is as if it were a monopolist of its product, since it is distinguished from the others. Product differentiation takes place through its characteristics, such as quality, brand, finishing standard, existence or not of technical assistance…
***Changing a ship's construction formula (BOM) can drastically change the prices of products on the market.
***** Factions and Squads function as companies, while Powerplays function as countries. *****
30.13) RESULTS OF Factions and Squadrons AND DEVELOPMENT OF A DECISION SUPPORT SYSTEM FOR LEADERS AND HIGH PATENT OFFICERS (WHO ARE RESPONSIBLE FOR FRACTIONS OF THE SPACE DOMINATED BY THE LEADER) - It is necessary to develop tables with results (income x expenses) and balance sheets of the regions controlled by each faction/squad... If factions and squads have their own budget, they can engage players in missions:
- Or they can use the resources to upgrade your NPC fleet or carry out mission of counter-intelligence tasks within the group's domain area (protect themselves against enemy espionage operations).
- When build/demolition type missions are available... Faction will invest in colonization of systems, planets, moons and asteroids...
- Can a high-ranking officer finance espionage operations against his own squad/ faction leader? A leader against a traitor?
There are other types of missions already suggested that can be used here!
*** With some substitutions, economic rules can be applied to ecosystems.
30.14) In general, it is suggested that the in-game currency works like Bitcoin (Value by a ratio of usage to the total amount of currency available)... Developers control the economy through monetary policy, for example, it is responsible for issuing money, it can have effects on inflation or interest rate. interest (minimum for loans to borrowing players and organizations).
Fiscal policy, in turn, refers to the determination of public spending and taxes affect the productive activities of companies and exchange rate controls the entry and exit of currencies (exchange of real money for game money would follow an exchange rate policy). How Powerplay make investiments... Each type of society/ faccion status coexists with a characteristic "unemployment rate". Developers must be able to use the "Phillips Curve" to control the game's economy. It is recommended to hire an economist for consultancy.
30.15) Decision Theory
30.15.1) It follows that, in environments with abundant resources, players tend to be cooperative, while, in places with scarce/ rare resources, players tend to compete.
So, we observe several problems in Elite Dangerous arising from non-observance of Game Theory... For example, suppose a player accepts a co-op mission with a prize pool of 50 million. Upon completion, the quest owner adds any player and he receives the full quest value (even without any contribution).
In addition to being unfair, it creates an imbalance in the game, as novice players have access to the biggest ships in the game without much effort.
In a simulated economic system such as the one proposed, the maintenance of this mechanic would lead to the price increase of ships and products - inflation (devaluation of the purchasing power of the currency... The search for ships, which require large amounts of resources - BOM - without the respective increase in production chain, ends up increasing the price).
As in the video example, quests must consider player association to leverage quest results, so everyone receives a higher reward, but proportional to their task within the quest.
An expansion proposal for the BGS and solution of other problems of the game (low use of Fleet Carriers markets, linking to Powerplays only for the item search, existence of structures without a defined function, such as settlements…). One of the trickiest elements in game design is to create a sustainable, balanced economy for your players. This affects all kinds of games, even where the is little overt resource management. However, in the era of Games-As-A-Service where we want to sustain the player experience for extended periods of time the design of your economy becomes hugely important...
30.1) The BGS is focused on the issue of changing power and system influence of factions in response to player or a group of players behavior. Every station has its own demands and supply that change dynamically. But, there is no expressive impact on the prices of goods and commodities. Money has no relevance to the BGS and that's a waste. There are many, many commodities and minerals in the game that virtually never see worthwhile prices. Because of this, they are almost never mined or traded.
30.2) Today, faction maintenance/conflict is something disconnected from the economy. Wars and disputes are fought without concern for ship losses, damages, locations to be conquered... Ship prices and reacquisition insurance are stable values, because the economy is disconnected from the BGS. Players aren't shy about keeping gigantic private fleets stationed at space bases. As with fleets, space in space must cost money.
30.3) There is no reason for the existence of the settlements, nor an explanation for the position of the bases. The proposal here is to link a new dimension to the conflict between factions - money. Money can provide space to allocate ships to faction players, “rent” specialized players from other factions for combat or mining / place additional ships and NPCs on battlefields / buy weapons, base and infrastructure protections, system specializations, protect territories, invest in linked factions, etc... Faction owners are no longer simply grouping players and start to have access to economic reports and act as administrators and military strategists.
30.4) In this respect, EVE Online's economy is the best benchmark... It has raw material mining systems and space factories that produce everything available in the game; from components for ships, weapons, even ammunition. All this, in the internal commodity marketplace. In addition, distribution centers for material shipments are also part of the many crucial processes to drive the game's huge internal economy.
30.5) Not to mention that manufacturing, storage, logistics and trading systems are buildings to be developed in which air or land missions that affect the economy of the owning faction and nearby systems can be carried out. Missions with the task of “Sabotage/Repair” in a fuel storage area, can influence the price of resupplying ships in the system, for example. Or raising too much the price of a raw material base of the production chain of a product, modifying the cost margins, profit, the demand and the prices of products in the nearby systems. They can also be bombed...
30.6) Following a “simple system” of Supply and Demand, with characteristics similar to real life, leaders and high-ranking officials of the factions would be offered weekly economic reports (synchronized to Powerplay), dealing with matters such as: Service fees, production vs. Destruction of materials, Transaction values by category, depending on the Powerplay situation (each of these nations have their own rules: laws, taxes, professions, ships, hundreds of players, production, bounty hunters, Commodities, etc... But , mainly, different ways of acting.
30.7) This will undoubtedly bring about additional problems typical of online games: bots that do human work autonomously, cheaters, and others that can cause, for example, oversupply and economic inflation/deflation in domestic markets. But it opens the door to the use of the economy as a weapon of combat, through the planning of actions to modify prices in enemy markets, increasing the complexity of the BGS.
30.8) Just as many countries have started to invest obscene amounts of money in weapons, military vehicles or infrastructure, without considering the costs of maintenance, modernization and retrofit. Faction leaders must balance revenue from their system operations with infrastructure and military costs. They can establish paid special missions (mining, logistics, combat, bounty hunting...) and this influences the economy of the faction and the target, as well as the surrounding systems, as there will be variations in the supply and demand of these systems.
30.9) Loans can be made between factions for the construction and development of production, storage, mining, marketing or defense infrastructure. The economy can be used as a weapon of war… Large factions can make use of “debt traps” to conquer territories, that is, make large loans against real guarantee of entire structures or systems, to factions with small economies, which will not be able to pay The payment. By executing the guarantee, the factions become the owners of these structure, revenue and territories.
30.10) How do I propose to deploy?
30.10.1) Definition of production inputs (Qi)- It is necessary to establish production chains for all existing items in the game… costumes, weapons, ships, equipment, etc. How much of each mineral, material, part is used for a suit “X”/ship “y”… for all items?
30.10.2) Definition of production cost (Qp) – Quantities of labor and energy used in the manufacture of the good.
30.10.3) With the definition of the bill of materials (BOM - is a centralized source of information containing a list of items used to manufacture a product and the instructions on how to do so. Often shown in a hierarchical way, a bill of materials (BOM) lists the finished product at the top, down to individual components and materials).
30.10.3.1) With the quantities used to manufacture each item in the game defined, considering:
Pi - Local price of production inputs
Pp – Local price of production cost
One can define a price equation per item, for a locally produced good, as the sum of the costs of the production chain:
Item Price (PI) = ∑ (Qi*Pi + Qp*Pp)
When the good available on the market comes from another system, the distance (Qd) and the price of fuel (Pc) will be added to the equation:
Item Price (PI) = ∑ (Qi*Pi + Qp*Pp + Qd*Pc)
The equations apply to goods and equipment as well as services (supply, repair, medical treatment, landing permit, per diem/stay...). I won't consider depreciation, salvage value and useful life as technologies capable of traveling the Galaxy and folding space must have extremely long useful lives.
These equations indicate the price for the good to be traded without profit (cost price). Fees/taxes can be arbitrated by factions or Powerplays and profit margins for production and trading locations. Added to the prices are storage services. With these equations defined for the products of a market, PI varies according to the cost components (Pi,Pp,Pc) and these, in turn, fluctuate according to the Law of Demand and Supply.
30.10.5) It is necessary to specify the production time of each item based on the existence of all the components of its equation, considering that each good and each part of the good produced faces the following logistical steps:
SUPPLIERS => WAREHOUSES => INDUSTRIAL PLANTS => DISTRIBUTION CENTERS => CUSTOMERS
30.10.5.1) A good, when sold to the customer, triggers a PRODUCTION ORDER THAT RUNS THE LOGISTICS STEPS IN REVERSE FLOW. For example, if a ship is sold…
CLIENT (SHIP) => DISTRIBUTION CENTERS (SEND PRODUCTION ORDER TO SHIP TO REBUILD LOCAL INVENTORY) => INDUSTRIAL PLANTS (ARE ACTIVATED TO PRODUCE ALL NECESSARY ELEMENTS FOR CONSTRUCTION OF THE SOLD VESSEL, AS WELL AS ASSEMBLY OF THE SHIP ITSELF AND REQUIRE MATERIALS DOS WAREHOUSES) => WAREHOUSES (SEND MATERIALS TO INDUSTRIAL PLANTS FOR MANUFACTURE OF COMPONENTS AND THE SHIP ITSELF AND REQUEST REPLACEMENT OF MATERIAL INVENTORY FROM SUPPLIERS) => SUPPLIERS (SEARCH FOR THE DEMANDED INPUTS)
30.10.5.2) If the installation is in a system that is in a “normal” situation, production times can be considered stable, but transport and storage times are not negligible and suffer deviations from a normal distribution.
30.10.5.3) If the installation of the logistic chain is in an abnormal system… “at war”, for example, its production can be delayed or paralyzed, harming stocks, increasing prices and supply times from that point in the logistic chain. If the situation occurs with food, systems have suffered price hikes and starvation. If ships or tritium, there will be shortages and price hikes, which can hurt a faction that is in conflict with an invader if the developers define that factions have to “buy ships/npcs for war”. 30.10.5.4) Supply and Demand are measured through the weekly relationship, synchronized with BGS, of the accumulation of PRODUCTION ORDERS within the Logistics Chains of each system.
*** And here we have the FLEET CARRIER markets BUG, which imposes additional fees on merchandise, competing with orbital bases that ALWAYS HAVE LOWER PRICES – FLEETS MARKETS BECOME USELESS.
10.30.6) DEMAND
30.6.1) The demand for a certain good (Dx) is given by the quantity of goods that buyers want to acquire, in a certain period of time. Economists consider as the most relevant factors for Dx: the price of the good; consumer income; the price of other goods (substitute and complementary); consumer habits and tastes. Thus, the demand curve for a good is descending from left to right, evidencing the Law of Demand – THE QUANTITY SEQUIRED OF A GOOD “X” VARIES INVERSELY TO THE BEHAVIOR OF ITS PRICE.
30.6.1.1) Economists justify such demand behavior in terms of two effects:
a) Income effect – when the price of the good increases, the consumer becomes, in real terms, poorer and will tend to reduce the consumption of the good (or the opposite); and
b) Substitution effect – if the price of a good increases and other goods (substitute or complementary) remain constant, the consumer will seek to substitute his consumption for the similar one (or the opposite);
10.30.7) THE OFFER
30.10.7.1) The supply of a certain good (Ox) is the quantity that sellers want to offer to the market, in a certain period of time. Economists consider as the most relevant factors for Ox: the price of the good; the price of inputs used in production; The technology; and the price of other goods (substitutes and similar). Thus, the supply curve for good X is a direct or increasing function of price. The higher the price, the more sellers will offer to the market.
10.30.8) MARKET BALANCE IN PERFECT COMPETITION
30.10.8.1) The equilibrium price is defined as the price that equates the quantities demanded by buyers and the quantities supplied by sellers, in such a way that everyone is satisfied:
30.10.8.2) A mathematical example… Assuming that the equations below show the demand and supply functions of good “X”:
QDx = 280-4Px (Demand)
QOx = -20+2Px (Offer)
280-4Px = -20+2Px
300 = 6Px
Px = 50 (Equilibrium Price, which equals the quantity supplied and demanded of the good)
10.30.9) SCHEDULE
10.30.9.1) The theoretical definition of a market in perfect competition presupposes the non-intervention of players or developers in the setting of prices. However, it is possible that, for some reason, faction leaders, high-ranking members (responsible for the development of faction areas) or developers, find it convenient to set prices. In this condition, if the value is fixed at a price lower than the equilibrium price, a shortage of the good will occur.
10.30.9.2) In this case, considering that the adequate solution for scarcity is not possible, as the prices are fixed. There will be no alternative but to manage scarcity. This can take the form of reduced influence/morality (queues in markets and supply systems), such as the appearance of the product on the black market with a price greater than equilibrium (premium). Another way of managing scarcity is the imposition of rationing, in which each consumer can only purchase a certain quota of the product so that everyone can be served.
30.11) CHANGE IN THE BALANCE MARKET PRICE DUE TO DISPLACEMENTS IN THE SUPPLY AND DEMAND CURVES.
30.11.1) The Demand Curve (Dx) shifts in relation to its original position when there is a change in: consumer income (Y); the price of other goods (Pz); consumer habits and tastes.
30.11.1.1) CHANGE IN CONSUMERS' INCOME (Y)
30.11.1.1.1) NORMAL GOODS – Those whose consumption increases as the player's income rises (special ammunition, energy cells with increased durability, improved suit shield cells…). Consider the following worksheet in which QPx (amount demanded at the old income level) and QP'x (amount demanded at the new income level).
Px: 10, 11, 12, 13
QPx: 100, 90, 81, 76
QP'x: 110,100,91.86
The new demand curve (D'x) lies to the right of the old demand curve (Dx), indicating that, for each possible market price level, consumers will be willing to purchase larger quantities of good “x”, because they have a higher income than before.
30.11.1.1.2) INFERIOR GOODS – These are goods whose demand decreases when the consumer's income level increases/or increases when the consumer becomes poorer (logic contrary to that of normal goods).
30.11.1.2) CHANGE IN THE PRICE OF OTHER GOODS (Pz)
A certain good “Z” can have the following relationships with an good “X”:
Z is a consumer good independent of X – in this case Z has nothing to do with demand for X. Changes in demand for one do not affect the other.
Z is a substitute for X – In this case, the increase in consumption of Z implies a reduction in the demand of X, or the opposite… In other words, the shift of the demand curve from Z to the right, implies the shift of the curve from X to left, in the opposite direction.
Z is complementary to X – These are goods whose consumption is done simultaneously, they are associated in some way (the components of a product, costume, ship…). In this case, shifting the curve of one can cause the curves of all goods in the production chain to shift in the same direction.
The system proposed here is structured in this type of relationship. There will be materials needed for various items, as well as extremely specific items.
30.11.1.3) CONSUMERS' HABITS AND LIKES – Variable influenced by advertising campaigns (shifts demand to the right) or by defamatory campaigns (shifts demand to the left).
30.11.1.4) Mathematically… Assuming the following example:
QDx = -2Px + 0.05Y -1.5Pz
*** The sign of the income coefficient (+ 0.05Y) is positive, so if income increases, the QDx value will also increase… So good X is normal!
*** The sign of the coefficient of the price of another good (-1.5Pz) is negative. If the price of another good increases, the demand for X decreases, so X and Z are complementary. If it was positive, they would be substitutes.
*** Px is negative, indicating an inverse relationship between price and quantity demanded (so X is not a Giffen good).
If consumers' income (Y) is 1000 and the price of another good (Pz) is 8, we have:
QDx = -2Px + 0.05*1000 – 1.5*8
QDx = 38 - 2Px
If consumers' income (Y) were 1200, the curve shifts to the right:
QDx = -2Px + (0.05*1200) – (1.5*8)
QDx = 48 - 2Px
THE INCOME OF CONSUMERS (Y) EXISTING IN A FACTION IS A FUNCTION OF THE BALANCE OF INFLUENCES BETWEEN FACTIONS (ECONOMIC AND SECURITY STATES).
30.11.2) DISPLACEMENT OF THE OFFER CURVE
30.11.2.1) The supply curve shifts in relation to its original position when there are variations in the price: of the inputs used in production; The technology; and the price of other goods (substitutes and similar). Suppose an increase in the price of inputs used in production (BOM – Bill of Materials) by “1”. Producers getting more expensive by “1”, to manufacture the same quantities, will want to raise the price of the product by “1”, so that their profit remains stable (Shift of the supply curve to the left). Changes in the price of “X”, do not cause a shift in the demand curve, the change in value occurs, in this case, ALONG THE CURVE ITSELF.
*** THE GOOD IS NEVER SOLD AT A LOST! AT THE MAXIMUM, WITH ZERO PROFIT. IF THE PRICE INDICATED FOR THE QUANTITY DEMANDED IS LESS THAN THE COST PRICE, IT LEAVES THAT MARKET.
*** Faction Quest VALUES ARE A FUNCTION OF Faction Balance! WOULD NOT BE LIMITED TO 50 MILLION. DEBTOR FACTS MUST MAKE LOANS, SUBJECT TO DEBIT TRAP, OR INFLUENCE IMPACTS TO OTHER FACTS AND CITIZENS FLIGHT.
30.12) WHEN THE MARKET FOR A POWERPLAY/REGION IS NO LONGER A PERFECT COMPETITION
30.12.1) Monopoly – is the market characterized by the existence of a single seller. Monopoly can be legal (secured by law) or technical (secured by technology – a single company owns the cheapest form of manufacturing).
30.12.2) Oligopoly – is the market in which there is a small number of sellers or in which, despite the existence of a large number of sellers, a small portion of them dominates most of the market.
30.12.3) Monopsony – is a market in which there is only one buyer.
30.12.4) Oligopsony – is the market characterized by the existence of a small number of buyers or in which, although there is a large number of buyers, a small part of them is responsible for a very expressive portion of the purchases that occur in the market.
30.12.5) Monopolistic Competition – this is a market in which, despite having a large number of producers (and therefore being a competitive market), each one of them is as if it were a monopolist of its product, since it is distinguished from the others. Product differentiation takes place through its characteristics, such as quality, brand, finishing standard, existence or not of technical assistance…
***Changing a ship's construction formula (BOM) can drastically change the prices of products on the market.
***** Factions and Squads function as companies, while Powerplays function as countries. *****
30.13) RESULTS OF Factions and Squadrons AND DEVELOPMENT OF A DECISION SUPPORT SYSTEM FOR LEADERS AND HIGH PATENT OFFICERS (WHO ARE RESPONSIBLE FOR FRACTIONS OF THE SPACE DOMINATED BY THE LEADER) - It is necessary to develop tables with results (income x expenses) and balance sheets of the regions controlled by each faction/squad... If factions and squads have their own budget, they can engage players in missions:
- Military Spies: These spies will sabotage construction fleets, shipyard buildings, system security buildings and ground troop support buildings.
- Diplomatic Spies: These spies will sabotage diplomatic efforts (destabilize - lower disposition for the others factions; Revolt - cause faction revolt).
- Scientific Spies: These spies will steal technology or sabotage research efforts.
- Political Spies: These spies will attempt to assassinate any leader the enemy has.
- Social Spies: These spies will create unrest, genocide, in the colonies to decrease production and try to incite rebellion.
- Industrial/Commercial Spies: These spies will strike or destroy production and logistics buildings.
- Agronomy Spies: These spies will strike food suplus or cause food poisoning.
- Government Spies: These spies will blow up enemy government buildings.
- Or they can use the resources to upgrade your NPC fleet or carry out mission of counter-intelligence tasks within the group's domain area (protect themselves against enemy espionage operations).
- When build/demolition type missions are available... Faction will invest in colonization of systems, planets, moons and asteroids...
- Can a high-ranking officer finance espionage operations against his own squad/ faction leader? A leader against a traitor?
There are other types of missions already suggested that can be used here!
*** With some substitutions, economic rules can be applied to ecosystems.
30.14) In general, it is suggested that the in-game currency works like Bitcoin (Value by a ratio of usage to the total amount of currency available)... Developers control the economy through monetary policy, for example, it is responsible for issuing money, it can have effects on inflation or interest rate. interest (minimum for loans to borrowing players and organizations).
Fiscal policy, in turn, refers to the determination of public spending and taxes affect the productive activities of companies and exchange rate controls the entry and exit of currencies (exchange of real money for game money would follow an exchange rate policy). How Powerplay make investiments... Each type of society/ faccion status coexists with a characteristic "unemployment rate". Developers must be able to use the "Phillips Curve" to control the game's economy. It is recommended to hire an economist for consultancy.
30.15) Decision Theory
30.15.1) It follows that, in environments with abundant resources, players tend to be cooperative, while, in places with scarce/ rare resources, players tend to compete.
So, we observe several problems in Elite Dangerous arising from non-observance of Game Theory... For example, suppose a player accepts a co-op mission with a prize pool of 50 million. Upon completion, the quest owner adds any player and he receives the full quest value (even without any contribution).
In addition to being unfair, it creates an imbalance in the game, as novice players have access to the biggest ships in the game without much effort.
In a simulated economic system such as the one proposed, the maintenance of this mechanic would lead to the price increase of ships and products - inflation (devaluation of the purchasing power of the currency... The search for ships, which require large amounts of resources - BOM - without the respective increase in production chain, ends up increasing the price).
As in the video example, quests must consider player association to leverage quest results, so everyone receives a higher reward, but proportional to their task within the quest.
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