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CSM notes on faucets & sinks

Author
mynnna
State War Academy
Caldari State
#161 - 2013-02-15 15:30:05 UTC
Mikhael Taron wrote:
As the economy of this game functions in a similar (same?) way as real life, it's probably best to look at the world in order to determine how to combat this inflation problem.


It doesn't.

In real life manufactured goods can't be made by absolutely anyone with only a minimal barrier to entry that results in cutthroat competition and drives the cost of those goods down very close to the cost of their raw materials, which in turn can be obtained by absolutely anyone with only a minimal barrier to entry that results in cutthroat competition and ruthlessly drives those goods in strict adherance to supply and demand.

That's why T1 goods in 2010 cost half what they did in 2006 despite what was undeniably a massive inflation of isk in the economy due to nullsec ratting, highsec missions, incursions, and wormholes, and why the only thing that prompted the price of those T1 goods to change was the removal of an enormous supply faucet of minerals.

If normal inflationary pressures apply to manufactured goods in this game at all they're utterly lost in the fluctuations created by supply and demand. The only thing normal inflationary pressures do affect in a noticeable way is the price of gametime in the form of plex, and even that's a stretch... as evinced by the faction warfare hilarity last year (for one such example), their price will soar based on the presence of something that puts more isk into the hands of more people faster and all the better if it takes a low amount of work relative to other activities with poorer payouts. That holds true regardless of whether it's a faucet or a sink (the FW stuff was actually a very major sink). The fixing of the FW hilarity has resulted in a steady drop in plex prices, accelerated by frequent CCP sales.


There are other reasons why it may be prudent to limit the size of the net faucet in the game, and there are all manner of ways of doing that, but the evidence available to players, at least, suggests that inflation in the classic sense of "Oh no my all my stuff costs more" is not one of them.

Member of the Goonswarm Economic Warfare Cabal

Vaerah Vahrokha
Vahrokh Consulting
#162 - 2013-02-15 19:02:30 UTC  |  Edited by: Vaerah Vahrokha
I agree a lot on what Mynna says except a couple of points.

In RL the markets try to make economy more efficient too and we have some countries where there is cut-throat competition and a zillion of "nobodies" building and delivering all sorts of stuff.

(Points I agree with): What EvE does not model is the myriad of inefficiencies we have to live with, from all sorts of taxes (including duties and the coming Tobin tax for EU) to RL ideologies and distorsions caused by politicians (well we had some in EvE, but way fewer than RL).

Plus in RL you don't necessarily have a "positive expectation" on money. In EvE everyone can become billionaire by doing some of the most menial and low effort / low entry barrier actions and a portion of those actions create money out of nowhere at the *individual* level. In RL the faucets are controlled at an higher level and used to command populations to follow somebody's plans. The only thing that comes close would be sov. alliances but their high level driven income does not come from ISK faucets but from materials faucets (thus markets decide the intrinsic value).

PS This post might sound or even be bad, I had all of 5 seconds to write it down.
RubyPorto
RubysRhymes
#163 - 2013-02-15 19:05:25 UTC
Vaerah Vahrokha wrote:
Plus in RL you don't necessarily have a "positive expectation" on money.


I would say that a bigger chunk of that is the fact that, in RL, people have to eat*. In EVE, not so much.


*to include food, housing, medicine, etc.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

Vaerah Vahrokha
Vahrokh Consulting
#164 - 2013-02-15 19:08:14 UTC
RubyPorto wrote:
Vaerah Vahrokha wrote:
Plus in RL you don't necessarily have a "positive expectation" on money.


I would say that a bigger chunk of that is the fact that, in RL, people have to eat*. In EVE, not so much.


*to include food, housing, medicine, etc.


Yet despite the obvious need to eat, in RL we don't necessarily have positive expectation, which leads to wars, starvations etc.

In EvE not only we don't care of those bodily needs but we have easy ISK spilling out of nowhere.
RubyPorto
RubysRhymes
#165 - 2013-02-15 20:23:21 UTC
Vaerah Vahrokha wrote:
RubyPorto wrote:
Vaerah Vahrokha wrote:
Plus in RL you don't necessarily have a "positive expectation" on money.


I would say that a bigger chunk of that is the fact that, in RL, people have to eat*. In EVE, not so much.


*to include food, housing, medicine, etc.


Yet despite the obvious need to eat, in RL we don't necessarily have positive expectation, which leads to wars, starvations etc.

In EvE not only we don't care of those bodily needs but we have easy ISK spilling out of nowhere.


I think you misunderstood me. I was agreeing that we don't necessarily have a "positive expectation" on money in RL, just disagreeing on the prime causes. Which could be because I'm thinking about a different meaning of the term than you. I don't know.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

DarthNefarius
Minmatar Heavy Industries
#166 - 2013-02-16 05:33:19 UTC  |  Edited by: DarthNefarius
mynnna wrote:
[(the FW stuff was actually a very major sink)..


I'd argue FW stuff didn't increase the LP sink since from the CSM notes skill books sink appears to have decreased fromCCP Diagoras last tweet about them & LP store sink did not overtake them as #1 according to Dr E in the last CSM summit notes.

There was I recall an implied promise of an DEV blog about the PLEX intervention for mid Janruary which never materialized where I hoped beyond hope this would also be discussed but its looking like we're going to be in the dark until Fanfest were I suspect a murkry economic summary will be unvailed concerningfaucets & sinks.

An aside:
I think that CCP Helmar was just as surprised as I was that no fuss was brought up about the PLEX Intervention TBH & its my suspicion that was why he was there in Dr E's economic portion of the CSM summit.
CSM summit Page 102 wrote:

Dr.EyjoG also provided CSM with a report on PLEX intervention(s) made by the EVE Central Bank since the last CSM Summit. The major intervention was related to a PLEX price spike triggered by a large FW payout, and PLEX prices have remained stable since that time. The CSM was satisfied that the ECB had acted appropriately and in line with the procedures previously described. Dr.EyjoG noted that he hopes to have a devblog out in January that discusses this topic in more detail.


A more market inteligent CSM should have asked questions about it so either they were NDA'd or stupid IMHO

I am curious why the rest of Eve never blinked twice about the PLEX interventionQuestion My first impression is that they are either too spacerich or ignorant about it to care about it?
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
mynnna
State War Academy
Caldari State
#167 - 2013-02-16 16:41:04 UTC
DarthNefarius wrote:
mynnna wrote:
[(the FW stuff was actually a very major sink)..


I'd argue FW stuff didn't increase the LP sink since from the CSM notes skill books sink appears to have decreased fromCCP Diagoras last tweet about them & LP store sink did not overtake them as #1 according to Dr E in the last CSM summit notes.

There was I recall an implied promise of an DEV blog about the PLEX intervention for mid Janruary which never materialized where I hoped beyond hope this would also be discussed but its looking like we're going to be in the dark until Fanfest were I suspect a murkry economic summary will be unvailed concerningfaucets & sinks.

You'd be insane to think that it didn't increase some, it was a massive farmer goldrush. Pilot population was 2-3x what it is now in FW. How much of an increase? Dunno. I don't remember seeing specific numbers in the notes (though I'd have to check again). It's beside my point though, which is that something does not have to be a faucet (a la incursions) to affect PLEX prices.

Member of the Goonswarm Economic Warfare Cabal

DarthNefarius
Minmatar Heavy Industries
#168 - 2013-02-16 16:46:25 UTC
mynnna wrote:

You'd be insane to think that it didn't increase some, it was a massive farmer goldrush. Pilot population was 2-3x what it is now in FW.



It was 1/4 the ISK sink at tier 5. There is a reason Dr E ain't showing the numbers...
Dr E show us the money!
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
Illest Insurrectionist
Sparta.
#169 - 2013-02-16 18:17:12 UTC
DarthNefarius wrote:
mynnna wrote:

You'd be insane to think that it didn't increase some, it was a massive farmer goldrush. Pilot population was 2-3x what it is now in FW.



It was 1/4 the ISK sink at tier 5. There is a reason Dr E ain't showing the numbers...
Dr E show us the money!


It was 1/4 the LP too. The isk and the LP never de-synced.

Instead of getting 1 module for 20lp and 20isk they got 4 modules for 20lp and 20isk.


RubyPorto
RubysRhymes
#170 - 2013-02-16 18:59:13 UTC
DarthNefarius wrote:
mynnna wrote:

You'd be insane to think that it didn't increase some, it was a massive farmer goldrush. Pilot population was 2-3x what it is now in FW.



It was 1/4 the ISK sink at tier 5. There is a reason Dr E ain't showing the numbers...
Dr E show us the money!


You're on this claim again.

Where is your evidence for massive stockpiles of unspent LP caused by gaining high tier (literally the only case where high tier results in less ISK being sunk)?

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

mynnna
State War Academy
Caldari State
#171 - 2013-02-16 20:20:27 UTC
Oh boy, here we go again.

Member of the Goonswarm Economic Warfare Cabal

RubyPorto
RubysRhymes
#172 - 2013-02-16 20:25:46 UTC
mynnna wrote:
Oh boy, here we go again.


Darth Nefarious: "Four Quarters is less than 1 Dollar"

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

DarthNefarius
Minmatar Heavy Industries
#173 - 2013-02-16 20:53:19 UTC  |  Edited by: DarthNefarius
RubyPorto wrote:
DarthNefarius wrote:
mynnna wrote:

You'd be insane to think that it didn't increase some, it was a massive farmer goldrush. Pilot population was 2-3x what it is now in FW.



It was 1/4 the ISK sink at tier 5. There is a reason Dr E ain't showing the numbers...
Dr E show us the money!


You're on this claim again.

Where is your evidence for massive stockpiles of unspent LP caused by gaining high tier (literally the only case where high tier results in less ISK being sunk)?


My evidence is from the CSM notes the skill books are stated to be down to near 6 trillion sink a month and are the #1 ISK sink and compare that to CCP Diagoras last publishing of the LP store ISK sink which was 6.3 trillion a month.

Dr E CSM notes page 103 Dec 14 wrote:

Dr.EyjoG repeated his statement from FanFest 2012 that the sinks and faucets in the game are not correct (which is relevant to the previous discussion) and pulled up a chart demonstrating this. By far the largest faucet in the game is NPC Bounty Prizes, at over 30T ISK/month. The biggest sink is Skill Books, at a mere 6T ISK/month.


Its the economy stupid
last February's faucets & sinks wrote:


Item Source/Sink Monthly Amount
Wormhole blue books Source $10,430,000,000,000
Incursions Rewards Source $8,566,015,400,900
Mission Rewards Source $2,470,815,985,076
Misson Bonuses Source $2,346,410,541,970
Insurance Payouts Source $3,366,455,121,035
Insurance Costs Sink -$1,618,888,782,680
NPC Bounties Source $32,083,329,999,805
NPC Sell Orders Sink -$13,000,000,000,000
Transaction Taxes* Sink -$2,375,100,000,000
Broker Fees* Sink -$2,607,100,000,000
LP Store* Sink -$6,331,570,000,000
PI Construction* Sink -$627,850,000,000
Clones* Sink -$910,600,000,000
Office Rental* Sink -$488,650,000,000
War Fees* Sink -$149,350,000,000
Repair Bills* Sink -$287,100,000,000
PI NPC Taxes* Sink -$741,820,000,000
Sov Bills* Sink -$809,100,000,000
Contract Brokers Fee* Sink -$301,600,000,000
Contract Sales Tax* Sink -$324,800,000,000

An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
mynnna
State War Academy
Caldari State
#174 - 2013-02-16 21:09:55 UTC  |  Edited by: mynnna
That's not evidence that FW "reduced the sink". 1000 isk per LP was sunk whether the LP was redeemed at tier 1 or tier 3 or tier 5. That is evidence that, at best, the sink from all the extra FW LP being redeemed wasn't really as big as we thought it was. But then again, Sreegs had announced only a month or so prior that he was banning the **** out of botters, which would have included mission runners, which would have resulted in a dramatic decrease in isk spent to redeem LP, which could have made room for the isk spent in LP stores to dramatically increase without actually pushing it up above the sink from skillbooks. In other words, perhaps the isk spent in LP stores by FW farmers "replaced" the isk spent by the banned bots, resulting in the total size of the LP store sink staying roughly the same.


The only way you can really claim that FW "reduced the sink" is that for X amount of LP, 4X items were bought, but only X was paid, meaning that only 25% of the isk that "should have been" spent to create those items was actually spent. I suppose that that's technically true, but that's not really "reducing" the sink so much as it is a matter of less isk being sunk than somehow could have been.

Member of the Goonswarm Economic Warfare Cabal

RubyPorto
RubysRhymes
#175 - 2013-02-16 22:05:11 UTC
DarthNefarius wrote:
RubyPorto wrote:


You're on this claim again.

Where is your evidence for massive stockpiles of unspent LP caused by gaining high tier (literally the only case where high tier results in less ISK being sunk)?


My evidence is from the CSM notes the skill books are stated to be down to near 6 trillion sink a month and are the #1 ISK sink and compare that to CCP Diagoras last publishing of the LP store ISK sink which was 6.3 trillion a month.


So, data about months where FW tier didn't affect the way the LP store sunk ISK is your evidence for FW players leaving, for no rational reason, massive piles of LP unredeemed when reaching high tiers?

I'm sorry, what?

Fanfest 2012 was before the FW changes. Two Step's blog was also before the FW changes. December 2012 is over a month after the late October nerf (blame November. It's always a terrible month.).

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

DarthNefarius
Minmatar Heavy Industries
#176 - 2013-02-16 23:31:11 UTC  |  Edited by: DarthNefarius
I do wish that the label of that chart was labeled September, October, or November 2012 but here we have hard numbers (evidence) that the LP Store sink has fallen from nearly a year ago. The most likely culprit was the FW insanity over the summer.

Dr E if you are reading this do you want to pipe in? Lol
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
RubyPorto
RubysRhymes
#177 - 2013-02-17 00:30:32 UTC  |  Edited by: RubyPorto
DarthNefarius wrote:
I do wish that the label of that chart was labeled September, October, or November 2012 but here we have hard numbers (evidence) that the LP Store sink has fallen from nearly a year ago. The most likely culprit was the FW insanity over the summer.

Dr E if you are reading this do you want to pipe in? Lol


The primary nerf hit at the end of October.

You're looking at either November or December's numbers and claiming they represent a time when FW operated under entirely different mechanics.

Where is your evidence that FW people looked at what they could do with their LP at Tier 5 and said "Nah, I don't want to convert this massive pile of LP before it converts into 4 times less stuff"? Hell, I'll settle for a coherent argument for why they would want to leave huge amounts of LP unredeemed.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

Mikhael Taron
Four Winds Industry
#178 - 2013-02-17 08:47:44 UTC
mynnna wrote:
Mikhael Taron wrote:
As the economy of this game functions in a similar (same?) way as real life, it's probably best to look at the world in order to determine how to combat this inflation problem.


It doesn't.

In real life manufactured goods can't be made by absolutely anyone with only a minimal barrier to entry that results in cutthroat competition and drives the cost of those goods down very close to the cost of their raw materials, which in turn can be obtained by absolutely anyone with only a minimal barrier to entry that results in cutthroat competition and ruthlessly drives those goods in strict adherance to supply and demand.

It does, hence the word similar.

mynnna wrote:

and why the only thing that prompted the price of those T1 goods to change was the removal of an enormous supply faucet of minerals.

Paradoxically increasing the supply of minerals due to mining becoming far more worthwhile than before. The faucet merely changed shape.

mynnna wrote:

If normal inflationary pressures apply to manufactured goods --) snip (--

Stay on topic, which is managing the amount of isk in the economy. I (still) realise you are blindly defending your cashflow, but manufactured goods don't inflate; the cash supply does. All this noise you're creating is a poorly executed attempt to obscure this.

mynnna wrote:

There are other reasons why it may be prudent to limit the size of the net faucet in the game, and there are all manner of ways of doing that

... as long as none of them interfere with your cashflow?

You can fool some of the people all of the time. You can fool all of the people some of the time. You can make a fool out of yourself anytime.

Mikhael Taron
Four Winds Industry
#179 - 2013-02-17 08:51:48 UTC
mynnna wrote:
--) snip (-- but that's not really "reducing" the sink so much as it is a matter of less isk being sunk than somehow could have been.


Translation: but that's not really "reducing" the amount of isk leaving the economy so much as it is a matter of less isk being removed from the economy than somehow could have been.

You on mushrooms?

You can fool some of the people all of the time. You can fool all of the people some of the time. You can make a fool out of yourself anytime.

Arronicus
State War Academy
Caldari State
#180 - 2013-02-17 08:58:22 UTC
Candy Oshea wrote:
Isk Sink: Name change & employment history wiped when buying character - cost 2 plex (destroyed)

re-invent yourself literally.



... Is this some sort of joke? That wouldn't take a single isk out of the game. That would be a real money sink. An ISK sink, would be, if the cost for wiping the name and employment history was 1.15billion. Then, actual isk is deleted. if an item is deleted, and not isk itself, it isn't a sink.

I like the idea of DUST having a greater impact on PI and sov in eve, but at the same time, have gear in dust be purchased from npcs for isk, and not produced. This way, Eve players will create lucrative contracts to dusties, dusties spend their isk on gear, weapons, vehicles, etc, from npcs, and the isk effectively leaves the game, with nothing re-entering eve except a service provided.