1 Cent Price Difference

Discussion in 'Suggestions' started by AriusX, Sep 7, 2011.

  1. AriusX

    AriusX Builder
    Builder ⛰️ Ex-Mayor ⚒️⚒️

    Joined:
    Aug 29, 2011
    Messages:
    65
    Trophy Points:
    25,320
    Ratings:
    +0
    I suggest a 1 cent difference between the server purchase price of an item and the server sell price. Essentially, the server will buy a dirt block for $.05 and sell it for $.06. The server store, and the /sell command, sell and buy everything at the exact same price. Aside from the fact that this is unrealistic, it makes EcoDollars highly inflationary, discourages commerce, and creates a super-rich class of players with nothing to do with all their money. A 1 cent difference will be unnoticeable, or largely so, to most players. However, the more that individual players rely on the server for supplies, the less value they will control. This will have the effect of, gradually, encouraging players to seek out resources in the wild rather than buying materials. By supporting more harvesting, and less server-purchases, the demand for in-game labor will increase. This will give rich players something to do with their money, namely buying labor. Also, poor and new players will have naturally occurring quests/jobs (harvesting and building).

    My belief is that this course of action will increase the amount of commerce in the server. As a side note, the larger the volume of commerce, the greater the demand for EcoDollars. The greater the demand for EcoDollars, the more likely players will trade real money for EcoDollars. From the standpoint of the server owner, I would imagine the goal is to maximize both fun and donations. I believe this action would assist in that goal.
     
  2. AriusX

    AriusX Builder
    Builder ⛰️ Ex-Mayor ⚒️⚒️

    Joined:
    Aug 29, 2011
    Messages:
    65
    Trophy Points:
    25,320
    Ratings:
    +0
    I thought you might. I know a bit about economics (not to toot my horn), and money in MC (at least with a bunch of players) has a few problems. In EcoCity, each player starts with zero dollars (Good choice), but there are perpetually renewable resources. Reeds, for example, can be harvested forever. As the server isn't responsive to normal supply/demand (reed prices never change), the reed farmer can generate infinite money. Regrettably, any unlimited currency has little or no value. There are only three possible outcomes from this problem. Either, server prices rise (inflation) making each unit of EcoDollars less valuable (thus harder to trade for real money), or players with fantastically large balances buy the entire world (reducing the fun for new players and de-incentivising the purchase of EcoDollars), or (and this is my choice) the server begin to destroy old money at a rate that is slightly higher than (or equal to) the rate that it generates new money. I know that everyone would be up-in-arms about a tax (as there is no government) or the imposition of fees (because they aren't needed), so the only solution I could think of was a price differential between goods sold and bought by the server. From an economic standpoint, this will simulate the actions of a central bank (that's what the server store basically is). It's voluntary, so no one loses any money if they don't want to, and you'll get the aforementioned player-fun benefits.

    From a planning standpoint, I'd recommend picking a target amount of money that you want in the world and enforcing that through a shifting price differential. As a slightly more mathematical approach, I'd recommend taking the total number of 200x200 plots in the world, multiplying that number by the cost of a town, and capping the EcoDollar supply at that number. As the money supply grows (from server store sales) the price differential between buying and selling should increase. The extreme case of this will result in the server buying some goods for nothing and selling them at high prices, but I think you'd rather have players gain no benefit from reed farming, than have infinity money.
     
  3. Rezonl

    Rezonl Builder
    Builder ⛰️ Ex-President ⚒️⚒️

    Joined:
    Apr 12, 2011
    Messages:
    1,436
    Trophy Points:
    28,970
    Ratings:
    +27
    Great post, completely agree, and it's odd that I have nothing to add to this suggestion, well written and explained thoroughly. +1