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Economy - Deterioration of GBT Prices
#1
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My 2 cents on GBT prices.

The GBT prices for aluminum have been decreasing lately at a fast rate; it seems like some players are trying to be price competitive in this virtual market.

However, if you are actually trying to make a profit from selling aluminum, you should probably stop doing that; this action may cause your aluminum to be sold easily and generate short-term inflow at first, but, as everyone starts to follow suit, you have to decrease the price further to achieve the same effect. 

Eventually, you and everyone else have to sell a much larger quantity of aluminum (or other resources) to obtain the same amount of profit. In addition, given the nature of the this virtual economy, once you have aluminum generator, it will never run out, and the rate at which it is produced can only become faster as you add more to your colony. The supply for these resources grows without a bound as more players join the game. All these factors will cause the prices to deteriorate over time.

If you are trying to transform GBT to a charity foundation, then I guess dragging the price down is better for those who are in need; however, if you are motivated by the short-term profit, please stop decreasing your price. This hurts all the suppliers who make profit off selling resources after all.

This applies to all rare resources, not just aluminum. 

Since I am no expert on how economies function, please correct me if your opinions differ.


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#2
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Hey but won't news players also need some aluminium at some point ? soo... Supply and demand ?

Eventually if everyone tends to have a LOT of EVERYTHING, prices will inevitably drop.

The only way for "old" players to remain at top of the game is to produce even more, or to be ready to massivly invest in new ressources when (if) they are implemented.

My non-educated guess of how economics works in a fully tax free market, such as the GBT.
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#3
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(01-29-2017, 06:43 PM)Zgrub Wrote: Hey but won't news players also need some aluminium at some point ? soo... Supply and demand ?

Eventually if everyone tends to have a LOT of EVERYTHING, prices will inevitably drop.

The only way for "old" players to remain at top of the game is to produce even more, or to be ready to massivly invest in new ressources when (if) they are implemented.

My non-educated guess of how economics works in a fully tax free market, such as the GBT.

If the old players reach a consensus in maintaining the same price level, the price will hold its place since this is a virtual economy. 

I agree with you that the supply will always be increasing; however, we can still control the prices and end the downward spiral if we work together. When everything are at the same price, the players in need have no choice and must fulfill their demand by paying that price. 

I guess that is like a monopoly (?), but since quality of goods is out of question, I don't think that would be harmful to the overall inter-colonial economy.  Big Grin
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#4
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In real life, it's called OPEC for Petrolleum, for example.

Two things :

How do you make everyone agree to something ?
How do you "punish" those that don't play by the rules ?
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#5
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(01-29-2017, 06:56 PM)Zgrub Wrote: In real life, it's called OPEC for Petrolleum, for example.

Two things :

How do you make everyone agree to something ?
How do you "punish" those that don't play by the rules ?

Yea... I wrote this mainly to convince those players to stop decreasing the prices. Maybe the developer can set a bottom line for each resources so the prices cannot decrease beyond a certain point?
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#6
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(01-29-2017, 07:11 PM)WeitDarn Wrote:
(01-29-2017, 06:56 PM)Zgrub Wrote: In real life, it's called OPEC for Petrolleum, for example.

Two things :

How do you make everyone agree to something ?
How do you "punish" those that don't play by the rules ?

Yea... I wrote this mainly to convince those players to stop decreasing the prices. Maybe the developer can set a bottom line for each resources so the prices cannot decrease beyond a certain point?

Price fixing already? That was fast.
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#7
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Not saying I do, but if I wanted to, why should anyone say that I can't sell my aluminum for $1/100 if I want? It's my aluminum that my colonists worked to produce so it's not anyone's business what I sell it for. A free market is just that. Free to sell at whatever price I choose.
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#8
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(01-29-2017, 07:21 PM)Patchdaddy Wrote: Not saying I do, but if I wanted to, why should anyone say that I can't sell my aluminum for $1/100 if I want?  It's my aluminum that my colonists worked to produce so it's not anyone's business what I sell it for.  A free market is just that.  Free to sell at whatever price I choose.

Yupp. I guess that's the beauty of GBT.

But as I said in my original message, if one wants to make large profits, it is better to maintain the price level. Those who are observing the prices and setting them just a bit lower than before likely wants to accumulate wealth, so I wanted to share my thoughts on this matter.
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#9
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Well, if you want to make huges aount of money selling beers, you gotta say a lot and cheap.

THen some people sold computer very expensive, and then its price decreased, then Hard Drives prices decreased, etc. New stuff are always more expensive than old.

One way of resolving your problem (which is not one) may be to be able to mass sell via the so called "Mass Driver". This way prices wouldn't get so low ? maybe ?

Anyhow, I'm not partisan to regulate the market. Let the beauty of pure theoretical market economy make its show ! Wink
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#10
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(01-29-2017, 07:38 PM)Zgrub Wrote: Well, if you want to make huges aount of money selling beers, you gotta say a lot and cheap.

THen some people sold computer very expensive, and then its price decreased, then Hard Drives prices decreased, etc. New stuff are always more expensive than old.

One way of resolving your problem (which is not one) may be to be able to mass sell via the so called "Mass Driver". This way prices wouldn't get so low ? maybe ?

Anyhow, I'm not partisan to regulate the market. Let the beauty of pure theoretical market economy make its show ! Wink

Haha good point! the mass driver actually acts as a price limit, since it would be better to sell in mass driver than GBT passing a certain point.

Oops, I did not think about mass driver when I wrote the thread.

EDIT: Seems like the mass driver's export price is always half of the GBT 'last price'? Never mind what I said about price limit then.
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