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How free is the market really? (White Giant)

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

Jo Jo Hun (Fearless Blue)

Saturday, November 15, 2008 - 10:25 pm Click here to edit this post
Perhaps some players really understand how the sim economy works, but I see no evidence of it here. I'll confess that I don't. Janja seems to me to have some good, unanswered points.

When supply is not meeting demand, for extended periods of time, and yet demand is being met, where are the products coming from? Are they actually being created by sim? Any evidence of that? The fact that sometimes demand is NOT met within a month, that there sometimes ARE product shortages, is counterevidence.

My impression from ongoing gamemaster posts, docs, chatlogs, etc is that the game DOES try to maintain a free market, and that it only occasionally and reluctantly interferes. (and KE please excuse me, I realize I owe you a response to a previous post). They acknowledge that they monkey around with QUALITY, but not with quantity.

It's obvious from just looking at some charts that sometimes there is a chronic shortage in a product, for at least 15 months, and yet the price is declining, certainly not clinging to or fluctuating around the ceiling of the price range. Why not? Why does the price move at all, if it's not being pulled by supply and demand?

If in fact W3 were creating products such as electric power to meet the gap between supply and demand, then planetary economies would in fact "crash" within a game month if W3 suddenly stopped interering. Long term, they need not. It's not so complicated...price would skyrocket for the product in demand, players would build many corps of that type because they would be highly profitable, supply would rise and prices would fall, an equilibrium would be reached. We all know that. There is no evidence or logic behind a statement such as "An entirely unregulated and free market just wouldn't work." It will. Would. In real life one might not like the way it works, or have the patience to let it work, but if left alone the supply will meet the demand at some price level, pretty much by definition. In sim it's so easy to increase supply that free markets will satisfy most of our expectations of how the game "should" work.

I interrupt this post to say "Hah, I think I've got it." But I like what I've written so far too much not to post it. Janja is right, there is still a problem even after uneven purchasing is accounted for. Anyone else know how to account for the apparent discrepancy between production and consumption?

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