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Market Control

2 replies [Last post]
Tue, 04/26/2011 - 08:22
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While not all players have access to a wealth of crystal energy, we all tend to have access to crowns at the end of the day, though not always enough to buy more energy, which is fantastic for three rings because it encourages people to actually spend real money on energy and I understand that's kind of the only way the game can continue to exist.

But, it would be nice if it were a function available for altruistic players who want to see energy costs remain low, that they have the ability to supplement the visible market price of energy. For example, say the price has got up to 5000 crowns for 100 energy, but I would rather the market price appear to be much lower in order to bring down prices and encourage competitive pricing. Ideally, I would get all my friends together and form a seller's alliance that agrees not to sell energy over a certain value to keep the market competitive, but say my friends and I have little energy. It would be nice if I could supplement the cost of those sales by a number of crowns. In this example, if I want the price to appear to be 3500 crowns, so that the next player who tries to sell energy sees that as the market price and has to adjust his pricing accordingly to be competitive, then I would have to pay 1500 crowns to the one selling for 5000 crowns, so that the buyer pays 3500, and the seller still receives his asking price.

This sounds way more complicated than I want it to be, but it seems like a valuable tool for player-assisted market stabilization, similar to the ability to boost sales of a particular mineral in the gates. It's something that would be more useful for guilds to use, say by setting a desired price for energy, and paying the difference out of a guild's account balance, (perhaps, to be less benevolent, only for guild members' purchases).

Of course, if players become aware of a constant price adjustment on their sales, they may just take advantage of it and assume its presence and always mark their sales too high, even buying their own energy at an assisted discount and reselling it for constant profit, so there are obvious problems with this, but I'm curious if anyone thinks it could work somehow.

Tue, 04/26/2011 - 08:35
#1
Pauling's picture
Pauling
You could just buy up a lot

You could just buy up a lot of energy and re-sell it at a lower price.

But I think you'd discover that energy is in very high demand. Just to make up numbers? If you and your friends invested 500,000 crowns towards lowering the price of energy by 500 crowns per 100, then you would be able to subsidize 1,000 trades (100,000 CE ~=$250 worth of energy). However- even without the existence of people playing the market- I suspect that the cheap energy would sell out within a few hours at most. What would you do to make this sort of altruistic investment sustainable and viable?

Tue, 04/26/2011 - 08:44
#2
sabriath
Legacy Username
wouldn't work

Sorry to be a bummer, but prices tend to stick within a specific gap...if you were to undercut by 1500 crowns, you would actually sell your energy to the highest buyer listed for the amount you listed it for (reducing his price and giving him his difference back). This doesn't place energy on the sell list, but rather take a buy order off...and you've effectively just hurt yourself for nothing.

The way the current market works is called free-open market (you have the freedom to enter/leave the market, and it's open for you to see the prices). It is almost exactly like put/call orders for stock futures, and is a great way to stiffen a market while making a small profit for some.

Another option is to use a one-sided secret market, but rarely works out well. Normally you see these in "secret auctions" (buy only for the buyer side), where you place a 'bid' on a piece of paper and drop it in a box so no one else sees the price you chose...the highest bidder wins that particular auction. In this situation, you would have buyers and sellers putting in secret prices that they are willing to buy/sell energy for, while the game would only show the average of both sides. This is actually detrimental to the players for several reasons:

1. Prices can be skewed by a good economist to favor his own agenda...by setting several "high" tickets to alter the sell average up, while trickling a few below average in order to sell for the actual profit (knowing that other people will just place theirs near the average). For example, if CE is showing an average of 4k (say 100 units evenly distributed from 3995 to 4005), a player could put a mere 10 units for sale at 100,000 crowns each. This would skew the average up to 12727 crowns. Players would almost immediately jump on the chance to make money, so reinforcing this average even more....the 100 units earlier would not want to lose out on profit either, hiking their price as well....now everyone is sitting around 12727 crowns.

Player then puts 5 units at 6,000 crowns, 5 at 5,500 crowns, 5 at 5,000 crowns, and 5 at 4,500 crowns...and waits. As the market realizes that they've been hiked and not selling, they will begin lowering their prices...all the while, this guy is selling his energy for more than 4k (until market drops back to normal).

2. Imagine the same above, but for the buyer end in the opposite direction.

Worse things happen on secret markets....keeping it open keeps the prices honest and at near true levels.

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