Irrational markets
Day 2,149, 02:09
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Published in Belgium 
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by
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by Boklevski
Another offer to upgrade companies. And although it used to be more fun when the eEconomy wasn't broken, I just can't resist to start up MS Excel and start calculating.
Today, I stumbled across an... interesting fact: our weapons market.
Simple calculation on foo
😛producing in a Q1 food company in eBelgium gives 140 Q1 food. Food is worth 0.07 BEF at the market, so the total value of one production batch is 140 Q1 food x 0.07 BEF = 9.8 BEF.
If you only work as manager (no employee), the only costs - ok, except some taxes - are raws. Let's assume you have just produced them yourself (again as manager), those are worth 140 raws x 0.04 BEF = 5.6 BEF at the market.
Hurray, we have just added 4.2 BEF value by converting raws to finished products.
Let's do the same for Q1 weapons. We produce 12 weapons per batch. Today, they sell at 0.24 BEF. So the value is 12 weapons x 0.24 BEF = 2.88 BEF.
Working as manager, the costs are raws, and for 12 weapons you'll need 120 raws. They sell at 0.06 BEF at the market, so the value is 120 raws x 0.06 BEF = 7.2 BEF.
Hurray, we have just... wait wut? We DESTROYED value by working! If we would have sold those raws at 0.06 BEF at the market, we would get 7.2 BEF for it. But now, we have spend 10 health working and get only 2.88 BEF for the weapons sold? So we have DESTROYED 4.32 BEF of value!
(Note: The raws materials price might be temporary inflated, so we can check for 0.05 or even 0.04 BEF per raws. However, the costs (120 x 0.04 = 4.8 BEF) is still higher than the profit (12 x 0.24 = 2.88 BEF). )
I have checked, and similar things happen for Q2 to Q6 weapons. (Assuming the raw price is 0.05 leads to losses for Q1 to Q3, with Q4 having a break-even.)
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Boklevski
Spokesperson of ATO
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Comments
Great thinking and yes erep economic sucks
Voted
Plato was kicked out of Economics 101
Only q7 weapons are profitable. Because nobody buys q1 till q6 weapons.
And all kind of foods are bought. That's why there is the difference.
Lower quality weapons are used for rockets, but there are more weapons made than needed for rockets.
The markets here, like Irl, aren't designed to give you money. They reflect demand. Nobody wants q1 weapons because they suck.
But then why do people still produce Q1 weapons? Why not just sell the WRM to Q7 weapons producers?
People are stupid. That is how this works, people too stupid to do basic maths give money to those who know what a spreadsheet is.
There is still need of Q1 weapons for the production of rockets, however that demand is still too little for the current production.
My theory is that people are not behaving market-intelligently. They just take companies because it's part of the game. Perhaps they aim to upgrade them to Q7 in long-term and use them to help self-sustain, putting occasional leftovers on market just in the hope it get bought.
Add that to the market unstability from Plato's events, and I think you get something quite close to what you se now.
Yeah, there has been stupid people for a while 😉. And it'll continue like that 😁
votado
[removed]
Its not like you are talking to,obviously the last missions still have some effect on the market...For the next missions probably we will need more or different weapons and the price would rise...The market is very unstable when Plato start with his missions - probably thats his solution for the awful economy system 😒.
V+S btw, o7
You're not missing something. At least not any more. That has been the case for quite some time already 🙁
I make plenty of money from the economy module. People have been complaining about how shit it is since I joined. Not being able to do it doesn't make it shit. Not being able to work together with other players to get capital etc doesn't make it shit.
You are right that it is possible to make loads of money in this economic module, however I think that is only possible because many are doing shit in economics. When all would behave smart and/or rational it would be very difficult to become rich in the game without spending loads of real life money.
Of course, all economies are based on lots of poor people an a few rich people. A lot of stupid poor people buy gold to compensate. That's their problem.
The only economics course I ever took started with the premise that all people are rational. Examples like this argue against that assumption.
One thing is clear - Plato is not telling new players all they need to know to succeed in economics. Some smart people like Iaian and Niemand figure it out for themselves; however, our Education ministries also need to be catching young players early and showing them the best economic path as well as the best military path. These are the places people are most likely to make big mistakes and get discouraged, and we should be proactive about preventing that.
Economy was f***ed up long, long time ago... Irrational is a nice way of putting it... 😃
voted o/