Market Discussions

Tier 4 FW the LP sotes get a 50% reduction in ISK & Tier 5 get a 75% ISK reduction. In the short term I think you may see a slight jump in the LP sink but after 2-3 months won't the ISK sink ( especially for+4 & +5 learning implants ) then start to reduce the ISK sink on a permentant basis from 6 trillion ISK a month to around 3-4 trillion a month? Dr E talked about neding to create more ISK sinks in Eve in his last State of the economy session but this DEV implementation seems to be doing the exact opposite.
If you keeped the LP reduction but killed the ISK reduction the ISK sink would be actually improve

I've tried to tweet CCP Diagoras for info/stats about this subject and hope to get a reply some day but with summer vacations & all I think the numbers will be hard to come by from him.

No. You still spend 1000 isk per LP that you spend regardless of whether you're getting a discount or not. All that changes is you can buy more **** for the same amount of LP.

Might want to read what he said. You still pay the same amount of isk for each LP you spend, you just get more goods out.

You just proved him correct. That said, I'm not sure how said tie is relevant to the question at hand.

What?!?!???
The demand for amount of ammo used is not going to be anywhere near linearly elastic because there is more supply & it may even be cheaper . You are sort of like assuming because you made 4 purchases there will be 4 more buyers

Here this may be more simpler example:

If you buy a +5 learning implant from ANY LP store except the FW ones ( at Tier 3 that is ) you pay 65 million ISK.
That is the ISK sink
If you buy the same +5 implant at the FW store at Tier 5 you are paying 16.25 million ISK
The ISK sink for that item is reduced by 48.75 million ISK!

Actually more ISK is destroyed per LP

Same ISK / LP ratio but more taxes on the transactions per LP.

The market is not going to by 4X times more implants because you bought 4X more implants
You will be able to undercut the other LP stores in price though leaving them with the bag



1/4 less ISK sink per item. Believe me the market won't just by your stuff at the forever at the same price because you make more of it... else I wouldnot be sitting on 4 million+ Concord LP & still selling Capitol mod BPCs & selling them for a proit of 9k per LP like when the Incursions irst started
Your math fails.

When myself & my goon cohorts were up to no good in FW we dumped more LP worth of implants than gets produced in months into the market in the span of just a few days. The market has handily recovered. Believe me when I say that the small FW population buying at tier 4 or tier 5 every now and then won't even get noticed, and thus yes, there are and always will be buyers. No, players looking at an opportunity to buy in tier 4 or tier 5 won't go "Oh well I don't think there are buyers, so I'll only spend a portion of my LP."

Since you're no doubt not convinced yet, let me explain from a different perspective why you are still wrong.

At tier 3, a FW pilot (as well as normal mission runners) pay 65m isk and 65k LP for a +5 implant. Selling at 95m per, they realize a ~30m isk profit, approximately 462 isk/LP.

At tier 4, however, the FW pilot now has an advantage! He can, for that same 65m isk and 65k LP, buy two +5 implants. Selling at 95m per, he realizes 60m in profit, 1923 isk/LP. Obviously this effect is magnified at tier 5 - at the same 95m implants bought at tier 5 are worth a hilarious 4846 isk/LP, with each of the four implants the pilot can buy yielding 78.75m profit.

Now, lets pretend for a moment that you're right, and the market can't sustain the price. You may even be genuinely right instead of merely pretend right, but the FW population is small, so it's hard to say. I can say that implants have not really dropped in price at all in the past couple of weeks, despite minmatar hitting tier 5 for the third or fourth time just now. But I digress - we're pretending you're right, and so

Oops. All of the sudden, normal mission runners can't compete! They make zero isk selling +5s. But the people happily farming FW at Tier 4 don't care - they're still making 1000 isk/LP profit, 32.5m per implant. Each implant they sell gets them a little more profit than they were making at tier 3, and they get to buy two! Sounds like a sweet deal.

Of course, now all the normal mission runners can't sell implants, and so the supply drops through the floor. Maybe some of them take up FW farming themselves, but lets face it, most of them are highly risk averse. In the face of diminished supply, prices rise again, until they're high enough that mission runners come back and crush it back down, and so on. Meanwhile, the FW pilots still don't care, because they're still reaping a bonanza, and more importantly, the whole time, they're still spending all their LP and thus still making you wrong.

The isk sink will not change. Either implants will remain expensive enough for normal mission runners to continue buying them, and then FW pilots will also buy them (which would actually be a net increase), or FW pilots will drive the prices down far enough that normal mission runners can no longer profit on them, meaning that the FW pilots will have to supply all of market demand on their own. Either way, things remain the same, because you always spend 1000 isk per LP redeemed, no matter what.

Carring your arguement out to the extreme if Tier 5 reducedboth ISK & LP by 1/1000th their would still be no affect on the ISK sink

Wish Dr E would comment on this hope he's reading it.

He's not the brightest bulb.