Is the market of PE collapsing?

[P-J]

In my opinion. No it isn't going to collapse yet!

It seems a mix of people preparing for future events (the landgrab means that players have been paying insane prices for good weapons and armour), the impact of current events (shops) mean that players will stop using the auction as much - while others are buying large amounts of furnishings and decorations to support their shops.

{edited in} and the new players that joined in December are now out mining/hunting - therefore the supply of basic raw materials will increase and the price of these materials will drop.

[aridash]

@ Serinity, no i dont think so at least nothing like you are proposing. Stage 1 and 2 are fair enough observations but the rest is, well flawed is putting it nicely.

Stage 3: the market is not unstable. Not everything costs alot, for example nerve blast chips are going for TT. Alot of crap is in auction that simply doesnt sell at all because people want to much for it or noone wants it (observe the numbers of man mph and Jester d1). The stuff going up is high end/good kit, stuff going down is materials where drops have increased. Thats the behaviour of a stable market, increase in demand means prices increase, supply means prices drop.

Stage 4. If you increase the drops, you'll increase the supply and reduce the price... need to fundementally rethink your theory at this point.

Stage 5. The economy only has what is put into it. more to the point, a typical, average individual will only have as much money as they themselves put in (except for ATH). The PED is fixed at $1 so it cant loose value. ever.

Stage 6. well we're with the fairies now. If people are leaving (less hunters) prices of stuff isnt going to go up is it? MA can never completly loose control as they rebalance the economy with the next VU. if theres too few or too many basics, they adjust.

Now the ecomony may collapse, but not like this. It will most likly be fairly sudden as a many people just stop depositing due to some fcuked up VU. History shows us that societies/economies collapse suddenly from an unforseen event.

[elisa]

Serinity, I don't think PE market atm is unstable. There is a difference between being unstable and being volatile. Unstable generally means that you may log on tomorrow and find 50% of your avi posessions lost in value. This is not the case. If you create some sort of consumer index (posessions of middle-level avatar would be a rough approximation), it won't change for more than 1-2% per day (which means: PE market is more likely quite stable than unstable).

Then, you if look at the ore market, prices are indeed stable for all most consumable commodities. Yes, there are movements (like current price on gazz), but it's completely within reasonable boundaries IMHO. Rare ores are different, but it still has nothing to do with stability.

Yes, prices on middle-to-high end weapons are overinflated in some sense. But not unstable.

[tomtoms]

Im afraid that Serinity theory is very realistic way of PE market in future if MA dont react in time. Inflation is major problems of all market based economy in RL and its the same with PE. They must stop that more and more money coming in game without enough goods to be produced in the same time.
Some proposals (very painful) :0)):
- deposits must have limit per month per player (100 usd/ month /pleyer), why? In theory someone can deposit 1 mio usd (must be crazy enoght) and buy everyting on market AND game is dead.
- all items must be personalized to use and after that you cannot sell it other way then through TT, (so we will have again interesting loot drops)
- for all items must be payed fee if player have them in storage more than one month and its not personalized (5% per day above 1 month),
- resellers must pay tax on profit, if they buy item and sell them with profit, (30% tax on profit)
- ..... free to add your proposals ....

And then we may call PE real economy.

[aridash]

Tomtom, apart from the point about taxing profits, none of those things exist in RL, so how does introducing them make the economy closer to RL? I have no limit on what i may earn, nor am i restricted on what i may sell or to whom or for how much. Im not taxed on my car if i dont use it. Inflation is a problem, but this isnt anywhere near the solution.

[tomtoms]

I dont know where you are living but in EU everything is TAX-ed, house, car, any kind of profits, salary .... everything.

[jonboy]

Originally Posted by aridash

Im not taxed on my car if i dont use it.

Well i live in the UK and you get taxed on your car if you use it or not. Unless of course you declare it off the road in which cases you cant use it until you pay the tax.

[jdegre]

Originally Posted by aridash

The PED is fixed at $1 so it cant loose value. ever.

I think there is a major flaw here. Obviously, in an inflationist market, the money losses its value, because after all, money is worth it for what you can buy with it. I bought rascal for tt+80, when 3 months ago it was tt+50, so my PEDs are worth it less now than before.
The main problem in the PE economy is inflation, and MA should control it somehow, otherwise the $$ of our deposits is worth it less and less every time, except to buy ammo

/jdegre.

[aridash]

yes, and thats decay in PE... But you dont get taxed to own it. Car is a bad example. I dont get taxed for my drill sitting in my cupboard, or the chair in the corner i never sit on.

@jdegre, no the value of the armour and other items has changed. The value of the ped to the $ remains the same.

[Erasmus]

PE economy is thin, very thin! And, unlike in the real world, MA does not publish economic data. To the contrary, we are in total darkness about how much is being produced, mined, looted, etc.

I don't believe the economy can crash, as MA can manipulate a number of factors without us even having a hint of that taking place or when.

I do believe that the dark cloud over the whole economy are the repair terminals. EVERYTHING should be consumable or limited. Supply and demand would adjust over time. Too many Jesters? Well, crafters would stop making them until enough of them are exhausted and removed the economy to see their value go up again. MA could still manipulate the economy by tweaking loots and mining.

Having only limited items also allows for larger numbers of each, as they have a limited life, thus a more stable market.