Market vs. Mechanics...
Day 713, 12:36
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Published in USA 
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by
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by dreaeuh
I'm working on an assessment / report that will be forthcoming in three sections. The first one will discuss the differences between markets and game mechanics, discuss limitations and alternatives.
The second part will take a while. I am thinking I will create an actual economic model for the game to try to disprove that mechanics overrules all possibility of a market system.
The third will be a summary.
Problem is, I'm bored with the paper already, because the data is all falling into one direction. I'm sure you can guess which way it is falling.
Give me a couple more days. My thesis statement is first and foremost of importance.
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Overproduction capacity...
Thanks for the idea.
Good luck with that. http://www.erepublik.com/en/article/a-terrorist-reads-the-global-economy-963017/1/20" target="_blank">http://www.erepublik.com/en/article/a-te[..]/1/20
I think the existence of the "black market", that is, trade conducted on the forums via the "donation" system, allows a very pure free market. The compromise between the convenience of the more regulated, taxed "marketplace" set up through game mechanics, and the freedom of the unregulated, untaxed "black market" operating on the forums could make for a very interesting study, I think.
The reason markets are more efficient in planned economies is the http://www.econlib.org/library/Essays/hykKnw1.html">Problem of Knowledge: No central economic planning board can possibly know all the details of individual and local economic variations, needs, and subjective valuation as well as those individuals do themselves.
In this game, on the other hand, the economy is simple enough that an economic planner can indeed know everything he needs to know to make economically optimal decisions. Since that's the case, leaving economic power in the hands of economically irrational actors rather than concentrating that power in the hands of a rational elite will result in a decrease in utility.
Keep up the good work, man. Looking forward to seeing your model.
All very good angles. I'll need them all for variables.
I always fail to consider the black market. It is indeed the venue for potential market fluidity. However, I think there is a trust gap.
We'll see.
You mean trust in terms of people not trusting each other on the black market, or in terms of people not trusting the black market itself as a method of commerce? In the former case, the contract system largely allows the black market to operate without depending on trust, however it is responsible for the "clunkiness" that makes black market transactions slower and more difficult than the in-game market. In the latter case, I think it's a perfect example of social Darwinism at work (and not in the racist sense that leftists promote). A smarter, better educated player who knows how to use the contract system and how to find or create deals can execute more beneficial transactions than a less-involved player who doesn't bother to find out how things work, and either uses the black market without understanding the contract system and gets burned, or is simply unaware that it exists.
Voted, looking forward to seeing the articles.