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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)

Monday, November 17, 2008 - 04:14 am Click here to edit this post
In the interests of resolving Janja's paradox clearly and quickly I'll sacrifice rhetorical points. Let's can the apples and skip to a product that lends itself to John R's analysis, I think: cruise missile ships. I'll pose a few questions to anyone who wishes to answer.

1) Is it possible to determine the trade volume, i.e. the number of cruise missile ships that changed hands on the open market, in Fearless Blue in a particular month, say September 2599 (current month)?

2) Would you agree that the "production last month" heading on the world market trading/factory utilization page is a misnomer, in that it includes cruise missile ships that are put up for sale by countries...and thus that we can only estimate the actual monthly production? Before you disagree, see for example offensive AAMB, which shows a production at 987% of production capacity, and for which I happen to know a large sell order from a country was recently placed.

3) Do you know why the monthly "demand" figures on the world market trading/factory utilization page differ from the monthly "demand" figures shown on the popup when one clicks on cruise missile ships?

4) Likewise, if your answer to #2 was "yes," do you know why the monthly "production" figures are different than the monthly "supply" figures on the popup?

5) Suppose this is the order book for cruise missile ships for some hypothetical month. It's not necessary, but assume 70 are actually built and put on the market each month.
buy orderssell orders
500@$2.50B70@$2.58B
200@best price70@$2.68B
20@$2.73B70@$2.78B
70@$2.88B
Now if I were writing the game I would have the 20 buy order filled at $2.73 and the 200 buy order filled at close to $2.69, and call that the "market price". Buyers are happy, sellers are happy, supply meets demand at a price. But I suspect Klarina is right in that the game doesn't fill orders as I think it should.

So what would you call the "demand"? What would you call the "supply"? Assuming the previous month's "market price" was $2.60B, what would this month's "market price" be? And which orders would actually be filled, and at what prices? And what would the "surplus" or "shortage" be?

Lots of questions, all seemingly simple. Absence of response to any or all doesn't imply ignorance. Nor do "yes/no" responses. Cute answers that avoid the point do, in my book. I don't claim to know the definitive answers to any of these questions. This isn't a rhetorical trap: I just think that Janja's paradox is an interesting question, granted a mostly academic one, and that there's got to be a real solution. I thought I knew it, but now I'm not sure. I'll restate the paradox in my own way: In some products there is a chronic shortage, for a period of years, with demand orders at "best price" continually going unfilled, yet during this period the price trends downwards...how can this be?

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