WRM Pricing Update 29FE2012 1800h UPDATE
Day 1,562, 05:47
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Published in Canada 
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by
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by Connor MacLeod
UPDATE: Added a snapshot from 0800h
UPDATE 2: Added a snapshot from 1100h
UPDATE 3: Added a snapshot from 1800h
The eCanadian congress has approved an import tax hike to 99% from 1%. In full disclosure I'd like to say that I voted in favour of this tax hike. The intent is to keep eCanadians buying from other eCanadians and reduce the number of people taking money out of our economy. Unfortunately, I believe the biggest impact on WRM pricing is (and will probably continue to be) the admins and their purchasing activity.
Throughout the day yesterday we saw foreign content on the eCanadian market continue to drop. The tax change overnight saw the majority of foreign market offers move from the 0.22 to 0.33 CAD range into a 0.48 - 0.66 CAD range (this reflects inactivity of the foreign owners...I expect these market offers to fall in line with the eCanadian pricing or disappear altogether). There are around 50,000 units in this higher price range.
28FE2012 1600h
369,288 units on sale (between 0.24 and 0.33CAD)
102,454 units foreign owned
27.74% foreign content
29FE2012 0430h
332,591 units on sale (between 0.24 and 0.33CAD)
43,016 units foreign owned
12.93% foreign content
29FE2012 0800h
323,114 units on sale (between 0.24 and 0.33CAD)
55,980 units foreign owned
17.33% foreign content
29FE2012 0800h
397,442 units on sale (between 0.23 and 0.33CAD)
6,550 units foreign owned
1.65% foreign content
29FE2012 1800h
336,673 units on sale (between 0.25 and 0.33CAD)
7,296 units foreign owned
2.17% foreign content
The composition of the foreign content has changed as well. There is no longer any eBulgarian offers in the market. eUK interests now hold the highest percentage of foreign content with 25K units of the total 43K. eRomanian interests follow with just under 11K units with eFinland and eUS comprising the rest of the offers (4K and 3K units respectively).
eCanadian interests continue to drive the price down below the more traditional 0.30 - 0.34 CAD range. It will be interesting to monitor the market moving forward to truly gauge the eCanadian output without interference from the admins.
UPDATE 0800h:
We see more foreign offers hitting the market in the 0.30 to 0.33 range as the orders get adjusted for the new tax rate. This can be contributed to 2 specific offers, one from Taiwan and an update on an existing UK offer (added quantity). The price floor remains constant at around the 0.24 to 0.25 CAD range. Extending the sample some to include the remaining offers (from 0.34 to 0.40) yields the following data:
144,759 units for sale
31,109 foreign units for sale (1 Polish offer)
21.4% foreign concentration
Moving further along the scale, all offers for sale between 0.54 and 1.03 CAD are foreign offers (total 45K units). The remaining offers are for dead citizens with the sole exception of one speculative order at 150.00 CAD per unit.
UPDATE 1100h:
Well there certainly does seem to be a significant drop in foreign market offers with the eCanadian market removing 180,000 units of foreign market offers in 24hrs from the prime pricing range. Now, some of that has moved up the scale (mainly due to offers not being updated) with approximately 45,000 units now priced between 0.54 and 1.03 CAD. Overall, demand seems pretty constant in the mid to high 300,000 unit range. I would expect the market is fairly stable now until the bot returns.
UPDATE 1800h:
There are still a few foreign market offers coming in at the prime price range. There is little movement in the higher price range. Overall pricing and supply remain constant. The focus should now shift to the difference in income tax realized by the government from the reduction in foreign offers.
UPDATE 2: Added a snapshot from 1100h
UPDATE 3: Added a snapshot from 1800h
The eCanadian congress has approved an import tax hike to 99% from 1%. In full disclosure I'd like to say that I voted in favour of this tax hike. The intent is to keep eCanadians buying from other eCanadians and reduce the number of people taking money out of our economy. Unfortunately, I believe the biggest impact on WRM pricing is (and will probably continue to be) the admins and their purchasing activity.
Throughout the day yesterday we saw foreign content on the eCanadian market continue to drop. The tax change overnight saw the majority of foreign market offers move from the 0.22 to 0.33 CAD range into a 0.48 - 0.66 CAD range (this reflects inactivity of the foreign owners...I expect these market offers to fall in line with the eCanadian pricing or disappear altogether). There are around 50,000 units in this higher price range.
28FE2012 1600h
369,288 units on sale (between 0.24 and 0.33CAD)
102,454 units foreign owned
27.74% foreign content
29FE2012 0430h
332,591 units on sale (between 0.24 and 0.33CAD)
43,016 units foreign owned
12.93% foreign content
29FE2012 0800h
323,114 units on sale (between 0.24 and 0.33CAD)
55,980 units foreign owned
17.33% foreign content
29FE2012 0800h
397,442 units on sale (between 0.23 and 0.33CAD)
6,550 units foreign owned
1.65% foreign content
29FE2012 1800h
336,673 units on sale (between 0.25 and 0.33CAD)
7,296 units foreign owned
2.17% foreign content
The composition of the foreign content has changed as well. There is no longer any eBulgarian offers in the market. eUK interests now hold the highest percentage of foreign content with 25K units of the total 43K. eRomanian interests follow with just under 11K units with eFinland and eUS comprising the rest of the offers (4K and 3K units respectively).
eCanadian interests continue to drive the price down below the more traditional 0.30 - 0.34 CAD range. It will be interesting to monitor the market moving forward to truly gauge the eCanadian output without interference from the admins.
UPDATE 0800h:
We see more foreign offers hitting the market in the 0.30 to 0.33 range as the orders get adjusted for the new tax rate. This can be contributed to 2 specific offers, one from Taiwan and an update on an existing UK offer (added quantity). The price floor remains constant at around the 0.24 to 0.25 CAD range. Extending the sample some to include the remaining offers (from 0.34 to 0.40) yields the following data:
144,759 units for sale
31,109 foreign units for sale (1 Polish offer)
21.4% foreign concentration
Moving further along the scale, all offers for sale between 0.54 and 1.03 CAD are foreign offers (total 45K units). The remaining offers are for dead citizens with the sole exception of one speculative order at 150.00 CAD per unit.
UPDATE 1100h:
Well there certainly does seem to be a significant drop in foreign market offers with the eCanadian market removing 180,000 units of foreign market offers in 24hrs from the prime pricing range. Now, some of that has moved up the scale (mainly due to offers not being updated) with approximately 45,000 units now priced between 0.54 and 1.03 CAD. Overall, demand seems pretty constant in the mid to high 300,000 unit range. I would expect the market is fairly stable now until the bot returns.
UPDATE 1800h:
There are still a few foreign market offers coming in at the prime price range. There is little movement in the higher price range. Overall pricing and supply remain constant. The focus should now shift to the difference in income tax realized by the government from the reduction in foreign offers.
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Hmm, he foreign content of the WRM market looks to have been 'decimated' overnight.
I had trouble keeping up with a stable market at times, now I'm just clueless every morning.
Looks like the eCanadian executive has moved off of the trade embargo policy I put into place over the previous four months. Enemy nations of eCanada, such as eUK, were blocked from the eCanadian marketplace entirely. Sad to see a protectionist wall of 99% taxes put in place that keeps our allies out as well, not a very good image to project with allies in EDEN (eRepublik Defence and ECONOMIC Network) and Terra.
It is hilarious that the foreign content was cut in half (from 27.7% to 12.9😵 and yet the prices didn't change (0.24 to 0.33). IMO, it projects a much more neighbourly and alliance-friendly image to keep your market open, ensure AVAILABILITY at that price, and cock-block your enemies as opposed to cock-blocking your allies from your market.
Great - now what about import duties on Food and Weapons?
As it stands we have a protected market for WRM which will in time lead to higher prices. We have high wages. And we are the duming ground for weapons and food from low cost producers.
Seems to me to be but one small step which if not now applied accross both raws and weapons and food will actually make the situation worse.
Addy - I believe you'll find the driving force on price is more the absence of Plato-bot then the effect of any tax policy.
It seems that the foreign content had already fallen 32% before the taxes came into effect. It may be the absence of the Platobot causing this trend. See Connors last article:
27FE2012 1700h
330,127 units on sale (between 0.28 and 0.33 CAD)
186,331 units foreign owned
56.4% foreign content
WRM Market Offers 20120227 1700h Data Gdoc
28FE2012 1100h
588,089 units on sale (between 0.21 and 0.33CAD)
224,615 units foreign owned
38.2% foreign content
WRM Market Offers 20120228 1100h Data Gdoc
http://www.erepublik.com/en/article/on-wrm-pricing-1977309/1/20
btw, that decimated comment was a reference to grammar police convention that Connor hosted a few days ago on the proper usage of 'Decimated' and other dismal decimal definitions.
I caught (and appreciated) the reference Plugson 😉
I've updated the data with a snapshot taken at 0800h.
Don't forget you've also lost around $8000+ in wrm import tax income
You could extrapolate that SAWC. I'm not sure that we could pinpoint the tax loss with any accuracy however due to the lack of sufficient data pre-tax adjustment to set our baseline. What I regret is not having a good baseline before the bot stopped buying. It's also unfortunate that the tax change came within 24hrs of the bot stopping as it makes it difficult to separate the individual effects on the market. We will either need to change tax policy (after a suitable period of time to establish a new normal) or have the bot begin buying again.
High import taxes means high citizen retainment.
EDEN WRM Import Tax by tax rate (from: eRepublik Wiki)
China 99%
Croatia 99%
Finland 99%
Romania 50%
Bulgaria 40%
Italy 30%
Ukraine 25%
Norway 20%
Portugal 20%
Belarus 10%
Ireland 10%
Greece 5%
Israel 1%
Top10 nations in EDEN by population Romania (3rd), Croatia (4th), Bulgaria (5th), China (10th) all have high tax rates.
All that matters is 99,999 $ cad in tax revenue, Any form of VAT/income/import is the way to do that.
Unfortunatley you can not tax Canadian WRM but you sure as hell can tax foreign WRM coming into the country. Pick and chose your economic policy but when the treasurey goes dry in 2-3 months you'll have to take a serious look at our tax policy again.
Gherk, you must know the difference between correlation and causation? Just because they have a high import tax and a large population does not mean that either caused the other.
It is unfortunate that we didn't haven't a baseline before Platobot went on his holiday. Then we could have an accurate idea of how much tax money we're losing out on (and likely will have to gain from other, Canadian sources) as well as how much extra CAD Platobot was pumping into the economy by buying foreigners RM.
Of course, I have a different opinion than most: I'd prefer allowing more people to potentially undercut Plato's prices and give Canadians a deal, would prefer the lowest tax rates possible for Canadians by getting more tax revenue through the import tax, and would even prefer an even lower value CAD (bad for me and other established businessmen personally, great for our economy and country overall as more people buy more companies sooner and therefore can buy more food and better weapons for increased damage and ranking). Either way, though, it would actually have been nice if we could see what the effects actually were.
When eCanada goes to 99% WRM this will cause the former eCanadian to flock back from the eUS as well as generate an increase in eBulgarians. So yes, high import tax does translate to a higher population.
If you want to look into this further compare Finland (21st population and 99% tax) versus Canada (20th population and 5% tax). I bet they overtake us in less than a month if we do not change to 99%.