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How does CCP take control of in- and deflation?

Author
polly papercut
Royal Amarr Institute
Amarr Empire
#61 - 2014-06-26 22:22:40 UTC
Gully Alex Foyle wrote:
I disagree. EVE IS REAL AND EVE IS LIFE. If anyone has anything negative to say fact driven or not I shall defend her honor!.


I do not have to do that to prove you wrong you can see for yours self ever time you log in. That active doesn't lie.
See unlike you I research before I say ****. You just spew crap every time you hit reply.

When you grow up one day and move out of your mothers basement you will understand that at the end of the day a business needs to make money.
CCP does not give a **** about you or me they care about those numbers. And if numbers start to decline you can bet your ass they will step in to do something about it.

going uber nerdrage mode because someone made some statements other than praise about your game is not going to help this game get better. I understand that when I say something negative about EVE you take it rather personal as you live EVE and EVE if your life so as a byproduct of my insulting EVE I am directly insulting you.

I am sorry you feel that way but this is a topic about if CCP will step in to control inflation or not and we are not here to discuss your feelings.

The things I stated are my views on things that may or may not happen and cause CCP to take action.
Gully Alex Foyle
The Scope
Gallente Federation
#62 - 2014-06-26 22:34:44 UTC
Roll

I actually suggested a possible solution to PLEX price increases.

But for some reason you prefer to either whine in great detail about how PLEX prices are affecting you personally, or speculate on how other players feel or where they live.

Make space glamorous! Is EVE dying or not? Ask the EVE-O Death-o-meter!

KaarBaak
Squirrel Team
#63 - 2014-06-26 23:42:05 UTC
Gully Alex Foyle wrote:
polly papercut wrote:
Sure I could spend the RL cash and while I like EVE it isn't worth the 30 a month to me I would rather go out for a drink one more time a month then spend the money on a game.
Sorry if you can't play for free anymore. Bye.


On a side note, it would suck if the PLEX mechanic jammed because of player price speculation. Maybe CCP could consider putting a time limit on PLEXs, to prevent hoarding?

I love the player driven market, but PLEX speculation may have nasty out-of-game effects.


I made the same suggestion a few years back. Put a 60 or 90 day age limit on PLEX. One of the problems was that each PLEX would then have to be a unique item with an expiration date. Of course, there are workarounds...All PLEX expire on the last day of the third full month following purchase--at least then they're batched together. Would lead to some interesting sales and runs on the PLEX market.

But, in general I think it's just a solution in search of a problem. PLEX have been the knife in the heart of EvE every time the price bumps up a little bit...and yet here we are.

On a separate note...re: the purpose of PLEX....thought it was two-fold--

1) allowing some players to "play for free" and
2) offering a sanctioned RMT method.

KB

Dum Spiro Spero

Mallak Azaria
Caldari Provisions
Caldari State
#64 - 2014-06-26 23:45:14 UTC
DaReaper wrote:
Mallak Azaria wrote:
Jurik McMoney wrote:
VonCricer wrote:
I do not believe Plex takes isk out of the game, it is a net 0 effect.


Of course it takes money out of the game. CCP wants 600M or something from you for a plex. That means that CCP takes 600M out of the game.


No, that's not how it works. To answer your original question: CCP does nothing because it's a player controlled market.



That's not entirely true. CCP does manipulate the market, but it tends to be things like making the shuttle no longer npc made, thus making the price of trit to rise.


There's manipulating the market, then there's continuing toward the end goal of having everything player made. Guess which one that is not?

This post was lovingly crafted by a member of the Goonwaffe Posting Cabal, proud member of the popular gay hookup site somethingawful.com, Spelling Bee, Grammar Gestapo & #1 Official Gevlon Goblin Fanclub member.

Mallak Azaria
Caldari Provisions
Caldari State
#65 - 2014-06-26 23:50:52 UTC
polly papercut wrote:
People who are playing via plex are doing so because EVE is not worth the real world money to play..


If it's not worth your money then it's probably not worth your time either, as evidenced by your incessant complaining over PLEX prices.

This post was lovingly crafted by a member of the Goonwaffe Posting Cabal, proud member of the popular gay hookup site somethingawful.com, Spelling Bee, Grammar Gestapo & #1 Official Gevlon Goblin Fanclub member.

Nevyn Auscent
Broke Sauce
#66 - 2014-06-27 00:14:46 UTC
Mithandra wrote:


Hang on what now?

Supply, demand and confidence are at the root of inflation. High demand , low supply pushes up what people will pay for an item , therefore making it cost more. ergo the price inflates.

When this happens on a broad front across the economy you get inflation

Low demand, high supply leads to merchants falling over themselves to sell their goods, thereby competing with each other, and the price people are willing to pay, ergo the price deflates.

When this happens on a broad front across the economy you get deflation.


messing around with mineral resources can lead to inflation or deflation.

Anything else is semantics

No, that's the economy of supply & demand affecting prices. Which is NOT inflation. It is a change in price but the two are not the same.

Inflation is about the supply of money. Real world governments print more money with nothing physical to back it a lot of the time, that printing of money is what creates inflation. Hence why Inflation is driven by Isk Sinks & Faucets (Of which the single largest is rat bounties, mainly from Null the last time CCP gave any breakdown on where they come from)
If there is a larger supply of money, then people with lots of money spend more to ensure they get a specific item, because money is worth less. If everyone has a larger supply of money, then it becomes worth less universally and all prices increase. However this is NOT supply and demand.

PLEX prices rising is similarly not inflation, it's simply supply and demand on a single item, which also isn't following the standard market trends.

So yes, prices rising on items 'MAY' be a sign of inflation. However it can be a sign of supply & demand & increased costs, which is what most of the price changes in EVE's economy actually are, as they can be directly traced to balance changes & mineral requirement changes.
Remy Nolen
Sama Guild
#67 - 2014-06-27 00:55:07 UTC
Plex prices rising is inflation.
As in, guess what the price of damn near everything on the market is based on.

For example: Why does a domi at jita cost +180m?
Well, the price of minerals to produce said domi cost somewhere in that range.
Now, the miners {as a whole} whom sell the minerals to manufacturers pretty much set the prices on their goods.
Those miners are controlled by players, whom intrinsically value their time/effort/ability to play Eve for no RL cash *important part*


Lets say CCP decided to permanently cut the real life cash cost of plex by 50%. Ships, modules, & damn near everything else player produced would fall in price. Why? Plex prices decrease due to increased supply, cheaper plex = cheaper for the miners/moon goo overlords to play for free.
Remy Nolen
Sama Guild
#68 - 2014-06-27 00:59:21 UTC  |  Edited by: Remy Nolen
one more thing, ratters et al who want to play for free will just farm more for plex vs not playing for free. Back when plex was sub 400m, a ratter farming @ 50m an hour just farms 8hrs. With it at 750, well the twats are gonna farm for 19 hours to make it. This time, they are injecting an additional 350m isk from ratting to pay for their plex.

As for why Plex prices are increasing, it's the real world economy/player base/extenal factors leading for decreased supply to compensate for increased demand created by CCP's recent additions & players motivation to play for free.
Tippia
Sunshine and Lollipops
#69 - 2014-06-27 03:04:43 UTC  |  Edited by: Tippia
Remy Nolen wrote:
Plex prices rising is inflation.
As in, guess what the price of damn near everything on the market is based on.
No. PLEX prices rising is PLEX prices rising, nothing more. It is not the general increase in prices for goods of services (preferably as a result of increased money supply) that qualifies as inflation. PLEX prices in particular are not inflation since their price increase is almost entirely speculation.

And the price of damn near everything in Jita is based on minerals and moon goo adjusted for how much of their disposable income people are willing top art with. This has almost nothing to do with PLEX but with speed of money and materials acquisition. Hence why stuff has only gotten cheaper as the efficiency of materials acquisition has gone up (and ISK and destruction efficiency hasn't been able to keep pace).

If PLEX prices were reduced by 50%, the price of the goods would remain almost exactly the same. Why? Because the time it takes to acquire the materials and the ISK is unaffected, as is the rate of loss. Yes, in-game PLEX prices would see a sharp downwards pressure, but that's it — there's no reason or incentive for anyone to cut their prices. In fact, if anything, a lower (ISK) price for PLEX would mean more time over for blowing stuff up, which would raise the prices of everything else.

The notion that item prices are somehow connected to PLEX prices is trivially dismissed by the fact that item prices have gone up and down (mainly down) whereas PLEX prices have only ever really gone up, and that the only significant things that have made items more expensive are direct alterations of materials availability and alterations in material requirements for specific items.
Mithandra
B.O.P Supplication For Glorious
Dracarys.
#70 - 2014-06-27 07:12:03 UTC  |  Edited by: Mithandra
Nevyn Auscent wrote:
Mithandra wrote:


Hang on what now?

Supply, demand and confidence are at the root of inflation. High demand , low supply pushes up what people will pay for an item , therefore making it cost more. ergo the price inflates.

When this happens on a broad front across the economy you get inflation

Low demand, high supply leads to merchants falling over themselves to sell their goods, thereby competing with each other, and the price people are willing to pay, ergo the price deflates.

When this happens on a broad front across the economy you get deflation.


messing around with mineral resources can lead to inflation or deflation.

Anything else is semantics

No, that's the economy of supply & demand affecting prices. Which is NOT inflation. It is a change in price but the two are not the same.

Inflation is about the supply of money. Real world governments print more money with nothing physical to back it a lot of the time, that printing of money is what creates inflation. Hence why Inflation is driven by Isk Sinks & Faucets (Of which the single largest is rat bounties, mainly from Null the last time CCP gave any breakdown on where they come from)
If there is a larger supply of money, then people with lots of money spend more to ensure they get a specific item, because money is worth less. If everyone has a larger supply of money, then it becomes worth less universally and all prices increase. However this is NOT supply and demand.

PLEX prices rising is similarly not inflation, it's simply supply and demand on a single item, which also isn't following the standard market trends.

So yes, prices rising on items 'MAY' be a sign of inflation. However it can be a sign of supply & demand & increased costs, which is what most of the price changes in EVE's economy actually are, as they can be directly traced to balance changes & mineral requirement changes.


http://economics.about.com/od/helpforeconomicsstudents/f/inflation.htm

This would see to prove us both right.

But back to the point and away from the cost of plex. CCP are doing the same sort of stuff governments do to control their economy and ISK supply. It may or may not be working, much like my own governments attempts Big smile

Eve is the dark haired, totally hot emo gothchild of the gaming community

Jurik McMoney
Deep Core Mining Inc.
Caldari State
#71 - 2014-06-27 10:17:07 UTC
Tippia wrote:
No, some yearly inflation is a good thing since it shows that there is growth in the economy and that there is room for more.


That's were you lost me. Inflation is good, because it shows that there is growth in the economy? Do you know what real worlds biggest economy problem is? It's based on continually growth.

Well - at the end this thread ended with too much blabla and self-profiling. But I guess one of the answers was that CCP manipulates prices and occurrence or pies/belts ressource and so on.

However, I got my answers - somehow. But this thread is a good example how deprecated this forum is compared to stack exchange alike Q&A forum.

Thanks to everyone that participated.

can't delete signature

Gully Alex Foyle
The Scope
Gallente Federation
#72 - 2014-06-27 10:30:40 UTC
Jurik McMoney wrote:
But this thread is a good example how deprecated this forum is
Next time try posting in Market Discussions subforum and just ask the question and listen to the answers, without trying to prove your own point.

Avoiding blanket statements on complex issues (such as 'Do you know what real worlds biggest economy problem is? It's based on continually growth.') also helps to maintain a cheerful and on-topic discussion.

Make space glamorous! Is EVE dying or not? Ask the EVE-O Death-o-meter!

Bizzaro Stormy MurphDog
B.L.U.E L.A.S.E.R.
#73 - 2014-06-27 13:56:18 UTC  |  Edited by: Bizzaro Stormy MurphDog
Jurik McMoney wrote:
Tippia wrote:
No, some yearly inflation is a good thing since it shows that there is growth in the economy and that there is room for more.


That's were you lost me. Inflation is good, because it shows that there is growth in the economy? Do you know what real worlds biggest economy problem is? It's based on continually growth.

Well - at the end this thread ended with too much blabla and self-profiling. But I guess one of the answers was that CCP manipulates prices and occurrence or pies/belts ressource and so on.

However, I got my answers - somehow. But this thread is a good example how deprecated this forum is compared to stack exchange alike Q&A forum.

Thanks to everyone that participated.


You came into this thread without a clear understanding of what inflation is (and is not), what an isk faucet is (and is not), what an isk sink is (and is not), or how PLEX work in a market environment. I hope you are leaving a little more educated :)

I am not an alt of Chribba.

Tippia
Sunshine and Lollipops
#74 - 2014-06-27 15:20:16 UTC
Jurik McMoney wrote:
That's were you lost me. Inflation is good, because it shows that there is growth in the economy? Do you know what real worlds biggest economy problem is?
EVE's economy is a simulation where the broken-window fallacy isn't a fallacy. Whatever you imagine the problems with the real world's economy are, they are all completely irrelevant to EVE.

So yes, inflation is good because there is room for growth — people are willing and able to shell out the bucks if the goods are there. There is room for even more production. If the inflation is constant, rather than increasing at an exponential rate, it means this growth is actually happening as well, which is also a good thing. You're lost because you haven't taken the time (in spite of being directed to the material) to learn what inflation is or how the market works in a game such as EVE.

Quote:
However, I got my answers - somehow. But this thread is a good example how deprecated this forum is compared to stack exchange alike Q&A forum.
No, it's not. Mainly because none of those “deprecate” forums.
This thread is a good example of why making assumption of what is the right answer when you ask the question will only cause you to not understand the actually right answer when it is given to you.
Ramona McCandless
Silent Vale
LinkNet
#75 - 2014-06-27 15:23:56 UTC
Jirk's expression;

http://tvtropes.org/pmwiki/pmwiki.php/Main/DullSurprise

"Yea, some dude came in and was normal for first couple months, so I gave him director." - Sean Dunaway

"A singular character could be hired to penetrate another corps space... using gorilla like tactics..." - Chane Morgann

Adunh Slavy
#76 - 2014-06-28 11:08:37 UTC
Riot Girl wrote:
Also removing faction standings losses from missions would help protect mission runners from inflation issues, which I expect to happen probably soon.



This would be a mistake. Mission runners, ratters and NPC trade good haulers should not be protected from inflation.

If shooting rats becomes less profitable than say shooting rocks, then more people will go shoot rocks and less people will shoot rats. When people are not shooting rats or hauling NPC trade goods, they are not producing ISK.

Mission runners and ratters can protect themselves from inflation. No need to whine to Mommy-CCP for subsidies and protection, something of which mission runners and ratters have far too much of already.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Adunh Slavy
#77 - 2014-06-28 14:49:56 UTC  |  Edited by: Adunh Slavy
Tippia wrote:

EVE's economy is a simulation where the broken-window fallacy isn't a fallacy.


Actually, the broken window fallacy is still valid for Eve, it is perhaps better to consider the broken window constrained. Breaking windows surely helps the Eve economy have incentive to replace those broken windows, but it is not what makes the Eve economy grow.

We must first recognize that for an individual, corp or alliance, destroyed wealth is destroyed. That lost wealth must be replaced, instead of used to some other purpose, which is Bastiat's point.

The constraint upon the fallacy is, there are few places for excess wealth to go and frankly there is not much anyone can do with it except make or brake more windows.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Tippia
Sunshine and Lollipops
#78 - 2014-06-28 15:09:11 UTC
Adunh Slavy wrote:
Actually, the broken window fallacy is still valid for Eve, it is perhaps better to consider the broken window constrained. Breaking windows surely helps the Eve economy have incentive to replace those broken windows, but it is not what makes the Eve economy grow.

We must first recognize that for an individual, corp or alliance, destroyed wealth is destroyed. That lost wealth must be replaced, instead of used to some other purpose, which is Bastiat's point.

The constraint upon the fallacy is, there are few places for excess wealth to go and frankly there is not much anyone can do with it except make or brake more windows.

Fair enough. It might not be the thing that makes the economy grow, but the economy is still heavily predicated on windows breaking at a substantial rate. Without that need for constant replacement, it would very quickly break down and make pretty much all of the game activities pointless. It's more that relationship that I'm referring to.

There is no wear-and-tear and no “this year's edition” — the only thing that creates continued demand for anything besides ammo is outright destruction.
Adunh Slavy
#79 - 2014-06-28 16:37:30 UTC  |  Edited by: Adunh Slavy
Tippia wrote:

Fair enough. It might not be the thing that makes the economy grow, but the economy is still heavily predicated on windows breaking at a substantial rate. Without that need for constant replacement, it would very quickly break down and make pretty much all of the game activities pointless. It's more that relationship that I'm referring to.


Understood. That 'pointless' bit is important. Eve is a game, and people want to have fun. 'Fun' being very subjective.


Tippia wrote:

There is no wear-and-tear and no “this year's edition” — the only thing that creates continued demand for anything besides ammo is outright destruction.


We all always want more stuff and better stuff. Unlimited demand exists in Eve just as it exists in the real world. Even if things were to never blow up, players would still demand more and better stuff. We have ample evidence of this with the so called risk averse carebear sect flying around in 20 billion isk pimped out faction ships. (Outside of Eve, there are countless games that allow people to build, create and demand more stuff at pretty much zero risk, from SimCity to those inane PopCap games. ... hence the subjectivity of 'fun'.)

Suppose however we could make 'fun' not subjective, by classifying all destruction of in-game wealth in pursuit of a 'point' (your 'pointless' reference) measurable. Then perhaps we can say: It is the destruction of the wealth and building of the replacement wealth where the 'fun' is, the absolute value of the 'fun' in ISK terms. "Objectified Fun", if you will.

Perhaps then we can more enlightenedly say, the broken window fallacy is not a fallacy in Eve. So, although constrained, it is perhaps also inverted, as it relates to Eve.

Just as a side note, it is this measure of 'fun' that justifies the actions of the "minerals I mine are free" crowd. They had fun mining their rocks, the opportunity cost involved in under pricing their manufactured goods, could be said to be the objective measure of the fun they had in mining the rocks.

anyway, lunch time, rambling over.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Tippia
Sunshine and Lollipops
#80 - 2014-06-28 16:53:08 UTC  |  Edited by: Tippia
Adunh Slavy wrote:
We all always want more stuff and better stuff. Unlimited demand exists in Eve just as it exists in the real world. Even if things were to never blow up, players would still demand more and better stuff. We have ample evidence of this with the so called risk averse carebear sect flying around in 20 billion isk pimped out faction ships. (Outside of Eve, there are countless games that allow people to build, create and demand more stuff at pretty much zero risk, from SimCity to those inane PopCap games. ... hence the subjectivity of 'fun'.)
Yes, but once that single demand is fulfilled, it is also over. I wouldn't call it unlimited for the simple reason that, once you have that ship, you have no need for a second one. Your demand for that ship (and its fittings) is now zero, and will never increase. Sure, you could formulate a second (very similar) goal and build a different ship, but that's still a one-time deal. Before long, you run out of ships to pimp.

It's not a matter of “fun” but of simple one-time fulfilment of a goal. Those other games actually suffer from the exact same problem, which is why their devs need to constantly produce more new stuff for people to grind towards, or new maps or higher scores and unlockables. That's where their demand comes from. They keep moving the goal-posts. EVE went with the route of (largely player-created) destruction instead, and cluster-bombs the entire pitch — if you survive, you'll have to glue together the splinters into a goal before trying to score again. P