Hello fellow readers. I've been playing this game for less than a week but I've heard about how stagnant the economic features are in this game. Instead of pointing out the lack of features from the eRepublik staff I'm going to delve into an issue that is less in the hands of the development staff but more in the hands of the players: inflation and unemployment.
For those readers who are not well versed in economics, let's start with some good old textbook definitions of inflation and unemployment.
Inflation: a rise in the general level of prices of goods and services in an economy over a period of time.
Unemployment: occurs when people are without work and actively seeking work.
Now that we understand the definitions of inflation and unemployment, let's look at how they're related. One of the key principles in economics is this aforementioned relationship between the two. It is a key principle of economics that society faces a short-run tradeoff between inflation and unemployment. (Mankiw's 10 Principles)
It is also important to know that inflation can be caused by too much money chasing too little goods. Unemployment, however, is a different beast. You can have structural, cyclical and frictional unemployment.
I don't want to ramble on for too long so I'll sum up the types of unemployment pretty quickly: Structural unemployment is unemployment caused by technological advances. Cyclical unemployment is caused by fluctuations in the business cycle. Frictional unemployment is caused by people moving from job to job.
Okay, now that we've covered the real world economy, let's compare the eRepublik one. Let's start by analyzing unemployment.
Pretty sure you don't see anything like this in eRepublik
In eRepublik, you can find a job very easily. You don't need any skills and productivity is not a factor. Also, technological innovations don't exist. Also, the cost of doing business is relatively low so that creates a glut of companies looking for hire. The issue of workers looking for work is not a problem because there's just a huge damn thing called the "job market" right there. Click a job. Boom, you're hired. However, cyclical and frictional unemployment can still potentially exist. But the case stands that unemployment remains much less of an issue in eRepublik than in the real world.
Too much money chasing too little food.
Inflation is a much more interesting issue it seems. Let's revisit to an earlier point of this article where I mentioned "too many dollars chasing too few goods". Now that I've mentioned that, why don't you check the marketplace? In the case of eRepublik, it might be the opposite. Too few dollars chasing too many goods. If this was real life, wouldn't market forces stop companies from oversupplying goods? Probably. In eRepublik, companies don't face the cost of simply maintaining the business. The only case of costs that apply to companies is labor and taxation of sales. Even with those, you're still not forced to use labor, you can even self-produce goods. So the case of having too many goods is not a problem in eRepublik.
So what does this point out about unemployment and inflation in eRepublik? One, unemployment is not much of an issue for workers. Two, there are a lot of goods and not many dollars chasing them. Three, there's no problem with number two. And finally, due to the extreme ease of maintaining business in eRepublik, selling goods is not urgent.
Besides my little tangent, here is a price report:
Erepublik lowest food and weapon prices (updated as of ~12:30 AM PST Sunday):
1S-.05 USD No change
2S-.09 No change
3S-.12 14% price decrease!
4S-.18 No change
5S-.31 8.8% price decrease!
6S-.41 2.5% price increase!
7S-.94 7.8% price decrease!
1S-.30 USD 25% price decrease!
2S-.61 17% price increase!
3S-1.23 5.4% price decrease!
4S~2.24 1.3% price decrease!
5S~4.15 3.5% price increase!
6S~5.95 9.2% price decrease!
7S~15.50 2.5% price decrease!
Weapons and Food Price Index: +3.64
Starting from today, I will start logging the WFPI to measure how the prices change over time. The WFPI is now at 3.64 based on it being 0 from yesterday. I will explain the mathematics behind the WFPI in my next post. Stay tuned!
What is this?You are reading an article written by a citizen of eRepublik, an immersive multiplayer strategy game based on real life countries. Create your own character and help your country achieve its glory while establishing yourself as a war hero, renowned publisher or finance guru.