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Player Features and Ideas Discussion

 
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stock market

Author
zerquse
Center for Advanced Studies
Gallente Federation
#1 - 2014-01-05 01:49:19 UTC
As the title says. I was wondering if anyone had this idea before. What if stocks were implemented into the game and you could buy and trade stocks much like the real world. Im not exactly sure how it would work at this point so im asking any who are interested to help. maybe ccp will like the idea. Also please no trolling. thanks
HiddenPorpoise
Jarlhettur's Drop
United Federation of Conifers
#2 - 2014-01-05 02:44:03 UTC
Already in game, and for a variety of reasons, no one uses them.
Arthur Aihaken
CODE.d
#3 - 2014-01-05 02:46:14 UTC
Queue Goons pushing Gallante sub-prime derivatives...

I am currently away, traveling through time and will be returning last week.

Secret Squirrell
Allied Press Intergalactic
#4 - 2014-01-05 17:04:09 UTC
The problem is that a stock market can only work if there is trust in the companies offering stock. In the real world, there is a massive regulatory and legal framework designed to reduce scams, both by requiring documentation of legitimacy, and by severely punishing those who attempt to perpetrate frauds. Thus your risk is mostly limited to the possibility that the company fails for ordinary business reasons, as opposed to in eve, where you are mostly worried its a scam. There is no way to really overcome that on a large scale, absent CCP abandoning the spirit of the game and punishing people for scams.
Endovior
PFU Consortium
#5 - 2014-01-05 18:52:48 UTC  |  Edited by: Endovior
HiddenPorpoise wrote:
Already in game, and for a variety of reasons, no one uses them.


Secret Squirrell wrote:
The problem is that a stock market can only work if there is trust in the companies offering stock. In the real world, there is a massive regulatory and legal framework designed to reduce scams, both by requiring documentation of legitimacy, and by severely punishing those who attempt to perpetrate frauds. Thus your risk is mostly limited to the possibility that the company fails for ordinary business reasons, as opposed to in eve, where you are mostly worried its a scam. There is no way to really overcome that on a large scale, absent CCP abandoning the spirit of the game and punishing people for scams.


Valid points, the combination of which imply that the current stock system is broken, and needs fixed.

That said, before you get into the thorny mess that arises from a stock market in player corporations, I think it'd be entirely reasonable to implement a "let's offer a place for people to play with ISK" type stock market, by letting capsuleers buy interests in NPC corps. If you had NPC corps regularly issue payouts based on some values loosely tied to in-game factors like taxes collected, business done in their owned stations, and successful missions run for them, then you already have a fairly chaotic set of initial conditions, upon which players can further speculate and drive market pressures. In the process, you might also consider the problem of what you want stocks to actually do beyond 'provide a basis for dividend payouts'; you'll doubtless want to have a series of things that you can meaningfully vote on and influence within the context of NPC corporate operations, if you want to employ the context of voting stock at all.

Once you've got a viable and robust market system that can handle trade of NPC stocks, then you can use the same system to handle higher-risk player corporation stocks. Given a proper underlying market system, the whole 'this is likely to be a scam' thing is something you can work around. Remember, there are plenty of people who are already running in-game financial services of this type anyways, even without direct in-game support; accordingly, the goal here is not to prevent anyone from possibly ever swindling anyone with the stock market ever, but merely to provide tools with which some people might legitimately conduct stock-market-type trading, within a reference frame that also allows for all the moustache-twirling villainy that people expect from EVE.
Julius Rigel
#6 - 2014-01-06 08:09:16 UTC
Endovior wrote:
Given a proper underlying market system, the whole 'this is likely to be a scam' thing is something you can work around.
Please elaborate.

There was a time (half a dozen years ago) when the stock market in eve was alive - you can probably read about it by searching for "EGSEx", EVE Galactic Stock Exchange, and "RESx", Real-time EVE Stock Exchange. But ever since that time, the demand for this type of business has dwindled, and now most investments happen in the form of limited-time, collateralized bond type loans.

Someone with knowledge of finance and economics could probably explain this in clearer terms, but the fundamental reasons why finance in EVE is different from finance in the real world includes these points:

  • There isn't much reason to do whatever you do with someone else's money instead of your own, beyond the initial loan that gives you the ability to do what you want to do in order to earn the money you need to perform that activity. So for instance if you want to make capital ships, you need an initial sum of money to buy the parts and blueprints to build the first batch of capital ships, after which point you can then return that money and use the profits you have gained to fund the materials for the next batch of ships.

  • That's not to say you can't find instances of this happening, just that the usefulness of a continuous arrangement is kind of limited.

  • In the real world, you can punch someone in the face. Perhaps an obtuse way to phrase it, but no matter what you do after you rip someone off in real life, it's going to be difficult to disappear off the surface of the Earth. Thus, scamming someone is risky, and takes a proportionate amount of dedication. In EVE, this restriction does not exist - you can drop off the proverbial face of the Earth, and there is no way for anyone to find you again if you don't voluntarily hand out your API key for them to see where the ISK ran off to.

  • That's not to say you can't find instances of "honest" persons borrowing money without collateral and returning it, it just doesn't make sense to give back the money if you're not going to need that person to trust you in the future.

So if you had figured out a simple way to "work around" this absence of consequences for scamming ISK and transferring it to a different character and simply vanishing, I think you would be incredibly rich off of lending money to people, and investors would be demanding your method of prevention rather than the traditional form of collateral whenever someone requested a loan in MD.
Endovior
PFU Consortium
#7 - 2014-01-06 12:39:45 UTC
My point wasn't that "there's an easy way for you to track down ISK after it's been stolen and laundered". My point was that, given the existence of voting stock that actually has notable effects, you could use that to make certain investments safer, by letting the stock imply certain rights on the part of the shareholders. Not MUCH safer, since if it's possible for corp assets to make their way into a guy's pocket, that's the game right there, but a little bit safer, in that people could notice when that's happening.

Now, even if we acknowledge the default 'scam case', where the CEO holds a majority of the voting stock, and as such can do whatever he wants, regardless of the wishes of his shareholders, you could still have different levels of information and protection. For instance, there could be votes that might be held on 'shareholder rights' for any given stock; one of the things you could vote on is visibility of corporate holdings, access to audit logs, and that sort of thing, which might help disciplined investors notice embezzlement. Similarly, different rules might be laid down regarding under what circumstances corporate assets are allowed to be removed from the corporation, limiting the ability of scammers to take the money and run (while also being somewhat of a hindrance in terms of day-to-day running, in the sense of having a list of things that you need to get a vote on). This wouldn't necessarily be the case all the time, but corporations that allow shareholders this access would have a competitive advantage when trying to raise money... at least to the point, in the default scam case, that you'll know instantly that you're being scammed, since a vote comes up whose specifics essentially mean 'and now, I'm running off with all the money'.

The non-majority shareholder case offers a few more possibilities, mostly in the sense of the shareholders seizing control of corp assets. This might be anything from a 'hostile takeover' (I buy enough of the shares of your corp that I essentially take full control of it, and proceed to empty all corp assets into my pockets... or perhaps I only got there by support of other investors, in which case I merely have the ability to replace the leadership in whatever way I and my allies can agree to) to a 'liquidation' (losing confidence in the corporation, the shareholders agree to empty the corp wallets, splitting its contents equally among them; also sets up a framework for the sale/auction of all remaining assets, proceeds to be taken proportionally by the shareholders).

Your point about EVE corporations generally not wanting to run with other people's money is valid. That said, some people do want to play with their money this way, and I think there should be a system out there to better support their intentions, part of which would involve an actual in-game stock exchange system, as opposed to a player-run thing. And, as before, I think that system should start by listing NPC corps first, and getting into player corporation stocks only after the market gets ironed out a bit.
Julius Rigel
#8 - 2014-01-06 16:16:47 UTC
Endovior wrote:
circumstances corporate assets are allowed to be removed from the corporation, limiting the ability of scammers to take the money and run (while also being somewhat of a hindrance in terms of day-to-day running
I think what you are describing is the "lockdown" feature for office hangars. This not only is a hindrance, but indeed a complete barrier to doing just about any kind of business. Only blueprints are useful in their locked state (and to a degree, in-space assets like starbases are somewhat useful to someone who can't unanchor them, such as research labs, but again, blueprints). Just about any other asset would be completely useless if you had to acquire a majority vote and wait 24 hours before undocking or selling it. That's why people don't run their investments that way.

Endovior wrote:
some people do want to play with their money this way, and I think there should be a system out there to better support their intentions, part of which would involve an actual in-game stock exchange system, as opposed to a player-run thing. And, as before, I think that system should start by listing NPC corps first, and getting into player corporation stocks only after the market gets ironed out a bit.
This part I disagree with whole-heartedly. I believe that decreased player agency is never the solution in EVE. The game's selling point is agency and emergence, and no feature should ever hinder or replace that.

I would be all for a feature that would make it possible to have the kind of complex financial systems that have existed in the past, as long as it doesn't take over or replace anything that the player has to do, or fundamentally changes the nature of EVE.

As an example, I still don't agree with the "align" button being added to the autopilot. Aligning to warp was the last and only widespread example of manual piloting, and it was something that every pilot had to learn as part of being competent in PVP. Now you don't have to learn even this most basic maneuver, because there are buttons for all the things you have to do during PVP (maybe with the exception of an interceptor pilot approaching a distant target at an angle to avoid long-range, low transversal weapons fire, but that's a pretty darned situational thing, and most pilots don't even need to understand it).
Endovior
PFU Consortium
#9 - 2014-01-06 17:57:42 UTC
Julius Rigel wrote:
This part I disagree with whole-heartedly. I believe that decreased player agency is never the solution in EVE. The game's selling point is agency and emergence, and no feature should ever hinder or replace that.

I would be all for a feature that would make it possible to have the kind of complex financial systems that have existed in the past, as long as it doesn't take over or replace anything that the player has to do, or fundamentally changes the nature of EVE.


We disagree strongly on this point, then. As is, there's only a minimal market for player-run financial concerns, because there's very little in the way of in-game support for them. Having dedicated game systems to handle stock transfers and sales, rather than 'some guy who may or may not do anything for you if and when he gets around to it' is a necessary requirement for there being a real stock market.