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How free is the market really? (White Giant)

Simcountry: Simcountry Bulletin Board  How free is the market really? (White Giant)

Janja0910 (White Giant)

Friday, November 14, 2008 - 09:55 pm Click here to edit this post
@John R:

True, but as far as I understand it, what you wrote explains why the demand (and with it the demand supply ratio) does not stay relatively constant, eventhough consumption is relatively constant. The price should still follow the relation of demand and supply, however cyclical in nature (maybe with a bit of phase lag).

My point is that the demand of electricity exceeds production EVERY MONTH for the last 10 years in white giant by around 25%, without any increase in price or a waiting time. (I did not look every month, but I expect the product information graphs to reveal the truth). By now some companies should really run out (and therefore pay somewhat higher prices). However, as the other players pointed out, there seems to be a price cap. And by the way the graphs look, I would assume it is realized in the program by satisfying demand out of nothing, once a threshold price is reached for a product. (Prices for electricity and other products where I suspect the same happens, all have a sawtooth pattern: Prices increase over a 3-5month period (due to excessive demand), and at more or less the same price as in previous cycles suddenly drop from one month to the other. That repeats over and over again.)

With the "zero powerplants" I wanted to illustrate how unsatisfactory this system is: Currently about 2000 powerplants are missing worldwide to meet the demand. This has no effect on price and supply to the corporations, because it is so excessive that the program-saves-system-mechanism kicks in. Hence, would it theoretically make any difference to close the other 7000 powerplants? I think not, because the program could just as well create the production of 2000 as of 9000 powerplants out of nothing. And then the question is: What do we need corporations for at all, if the products will be there without them just as well?

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