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Minimum Wages, Price Policy and a Ship's Worth

Author
Varyah
Caldari Provisions
Caldari State
#1 - 2015-01-05 01:35:15 UTC  |  Edited by: Varyah
Since I started EVE I often wondered why there isn't much fluctuation in the prices of of the more "expensive" stuff - this should be a player driven economy. Well, after turning on my pocket calculator, err, calculator app (I don't remember when the last time was that I saw a real pocket calculator). Anyways, I was shocked when I realized that this is not really a player driven economy:

Example:
Astero: 90M ISK
Astero BPC contract: 80M ISK
Astero LP store cost: 30000LP + 15M ISK
Astero manufacture mineral costs: 500k ISK

This is so wrong! You pay 15M license fees and about 1-2 hour work (missions) for SOE so that they allow you to build a ship that is worth 500k in materials + some manufacturing costs -- essentially nothing, even if we don't outsource manufacturing to Amarr! I mean people buy it, but then there is no labor union or anything.

You could double the amount of minerals needed and no one would notice through fluctuations in the market price.

I can accept that LP ratio is that high - done by players. But the 15M vs 500k is just bad. I petition for the SCC to drastically regulate the license fees to ensure a more freely exploitable market.


So my suggestion is to shift this unproportional distribution of the cost drastically towards the minerals.

1. Nothing really has to get more expensive.
2. Mining gets more profitable.
3. Ganking miners gets more profitable.
4. ???
5. Profit.


I doubt I am the first to suggest this - but I didn't find anything similar posts with a few tries with the search function.
Nevyn Auscent
Broke Sauce
#2 - 2015-01-05 01:37:25 UTC
Frigates cost similar amounts of materials to build. What you are proposing would result in a frigate requiring Cruiser levels of material to build, despite being a mere fraction of the size.
Also if minerals go up, value of EVERYTHING ELSE to earn isk goes down.
Danika Princip
GoonWaffe
Goonswarm Federation
#3 - 2015-01-05 01:39:28 UTC
You're paying for the LP, not the minerals. Why is that a problem?
Gawain Edmond
Khanid Bureau of Industry
#4 - 2015-01-05 01:41:03 UTC
it's a mostly player driven economy but in the end ccp set the prices of all the things in the game and adjust the avalibility of everything to manipulate the price and avalibility of items mining shouldn't be more profitable anyway it's done afk by people who don't pay attention to the game they should be punished for this!
Komi Toran
Perkone
Caldari State
#5 - 2015-01-05 01:53:46 UTC
With your reasoning, there would soon be no ISK sinks in the game.
Zimmer Jones
Aliastra
Gallente Federation
#6 - 2015-01-05 01:55:38 UTC
No welfare in eve, no unions, no rights, eve is the perfect flat and open market Sim. No graft, as many middlemen as remains profitable, and prices at what the market will bear. Working as intended.

Eve is enough of an economic Sim that some business courses have used it, and no surprise it needs fine tuning. One small change to ships/guns/modules/mechanics and the demand for certain things skyrocket and the economy frequently isnt prepared for it. A scramble ensues, and market imbalances make themselves known. CCP adjusts drops and raw materials to compensate for a drastic change in market. So there you have it: CCP makes changes to materials to compensate for new game mechanics being exploited as eve players are known to do.

Eve, where everyone is both game tester and product

Use the force without consent and the court wont acquit you even if you are a card carryin', robe wearin' Jedi.

Varyah
Caldari Provisions
Caldari State
#7 - 2015-01-05 01:57:58 UTC
Komi Toran wrote:
With your reasoning, there would soon be no ISK sinks in the game.


That is actually a good argument against my proposal. I'll have to think about this some more.
James Baboli
Warp to Pharmacy
#8 - 2015-01-05 02:13:51 UTC
Varyah wrote:
Komi Toran wrote:
With your reasoning, there would soon be no ISK sinks in the game.


That is actually a good argument against my proposal. I'll have to think about this some more.

The best way to think of mining is as a minimum wage activity. It has some of the lowest possible risks and everyone can stick t1 mining lasers on a ship out of the gate, so you have a massive pool of possible competition. Thus mineral prices remain relatively low. LP or the chips/bpcs for faction toys has a much larger risk to acquire, and the pool pf people who can run this content is smaller, and close to the barrier to entry for more lucrative or fun content, thus the relative price of the lp is gonna be much higher.

Talking more,

Flying crazier,

And drinking more

Making battleships worth the warp

Daichi Yamato
Jabbersnarks and Wonderglass
#9 - 2015-01-05 02:26:58 UTC
Varyah wrote:
Anyways, I was shocked when I realized that this is not really a player driven economy:



Then goes on to describe how its player driven.

Quote:

I can accept that LP ratio is that high - done by players. But the 15M vs 500k is just bad. I petition for the SCC to drastically regulate the license fees to ensure a more freely exploitable market.


so SoE cant put a premium on their own ships...which are unique and highly sought after?

They even give them away at a cheap price, provided you've done some work for them.

EVE FAQ "7.2 CAN I AVOID PVP COMPLETELY? No; there are no systems or locations in New Eden where PvP may be completely avoided"

Daichi Yamato's version of structure based decs

Paranoid Loyd
#10 - 2015-01-05 03:57:07 UTC
You didn't pay attention in economics class, did you?

"There is only one authority in this game, and that my friend is violence. The supreme authority upon which all other authority is derived." ISD Max Trix

Fix the Prospect!

Jenshae Chiroptera
#11 - 2015-01-05 04:15:28 UTC  |  Edited by: Jenshae Chiroptera
Varyah wrote:
Astero BPC contract: 80M ISK.


... and it is part of making a Taranis.

Oh and volume, if you buy into making ships for profit you need to churn them out in good numbers.

CCP - Building ant hills and magnifying glasses for fat kids

Not even once

EVE is becoming shallow and puerile; it will satisfy neither the veteran nor the "WoW" type crowd in the transition.

Caleb Seremshur
Bloodhorn
Patchwork Freelancers
#12 - 2015-01-05 07:51:18 UTC
Paranoid Loyd wrote:
You didn't pay attention in economics class, did you?


Since the 1920s only one modification to the education syllabus has occured. The change introduced was to remove the study of economics from pre-tertiary education. Since the overwhelming majority of people don't go to university and most of those who do don't study economics the end result is now the bulk of your population is ignorant to the terminology pokicy makers use when setting new laws or controls in place.

Extrapolate to eve. Skilling up market stuff doesn't educate the player. Maybe if the average person actually knew what their labour was worth people wouldn't be stuck in the spiral of wagr slavery.
Varyah
Caldari Provisions
Caldari State
#13 - 2015-01-05 15:41:16 UTC
Paranoid Loyd wrote:
You didn't pay attention in economics class, did you?


How about this:

The main activity in EVE is to blow up ****; therefore, players have to do other activities to gain ISK to fund the blowing up of ships.

Some sort of equilibrium will manifest for how much players can spend on average on ships and modules in a given time frame.

Production: If you want to increase your profit you have to sell more than the competition, i.e. sell slightly cheaper but hopefully a higher volume (cheaper stuff will get bought first, some equilibrium will reassert it self). For a miner this means that the single one method to increase your income is to multibox because there is a hard cap on how much you can mine with one character.
Therefore multiboxing will be highly profitable while every solo miner will bite the dust. And I would argue that this is why minerals are so cheap.

Every other activity in the production business is easily done with serveral characters, manufacturing, research, PI, etc. needs minimal interaction, even less than mining. Controlling several ships at the same time even if it is just activating that lasers on every one of them needs more dedication.


Quote:
No welfare in eve, no unions, no rights, eve is the perfect flat and open market Sim. No graft, as many middlemen as remains profitable, and prices at what the market will bear. Working as intended.

Eve is enough of an economic Sim that some business courses have used it, and no surprise it needs fine tuning. One small change to ships/guns/modules/mechanics and the demand for certain things skyrocket and the economy frequently isnt prepared for it. A scramble ensues, and market imbalances make themselves known. CCP adjusts drops and raw materials to compensate for a drastic change in market. So there you have it: CCP makes changes to materials to compensate for new game mechanics being exploited as eve players are known to do.


One point of critique: The problem of availability of currency. ISK is generated out of thin air (missions rewards, bounties on rats) and vanishes from the game the same way when purchasing someting from npcs. While this is connected with some reward and time consumption for regulation the problem is that their is no actual value of ISK, no gold reserves, and more importantly no fixed amount of currency in use; if for some reason players spent less ISK on npc offers the amount of ISK in use will just rise uncontrolled. This is where CCP's arbitrary regulations of prices come in, as you already mentioned. By my definition this is not a free market sim and I suppose it is impossible to achieve.



At least I understand the workings of EVE economy a bit better. Thanks for the input everyone.
Jenshae Chiroptera
#14 - 2015-01-05 15:59:53 UTC  |  Edited by: Jenshae Chiroptera
I argue that multi-boxing has over supplied the market and that is why mineral prices are so low.

Before you say they are now banned and we should see a drop - there is huge, absolutely mind blowing stock piles of ore and minerals we still need to get through. You probably won't see what this ban has done for another year.

CCP - Building ant hills and magnifying glasses for fat kids

Not even once

EVE is becoming shallow and puerile; it will satisfy neither the veteran nor the "WoW" type crowd in the transition.

Zimmer Jones
Aliastra
Gallente Federation
#15 - 2015-01-05 16:58:36 UTC  |  Edited by: Zimmer Jones
Varyah wrote:

One point of critique: The problem of availability of currency. ISK is generated out of thin air (missions rewards, bounties on rats) and vanishes from the game the same way when purchasing someting from npcs. While this is connected with some reward and time consumption for regulation the problem is that their is no actual value of ISK, no gold reserves, and more importantly no fixed amount of currency in use; if for some reason players spent less ISK on npc offers the amount of ISK in use will just rise uncontrolled. This is where CCP's arbitrary regulations of prices come in, as you already mentioned. By my definition this is not a free market sim and I suppose it is impossible to achieve.



At least I understand the workings of EVE economy a bit better. Thanks for the input everyone.


*puts on tin foil hat* ah, but all money is fiat money, created out of thin air as representation of debt, or a universal IOU.
*takes off hat*
Fake game currency needs some kind of fake labor/time investment. Ccp's management of resources could also be seen as setting up market scenarios, but ultimately is because eve needs to be fun enough to make real money.

Also, eve's market has to be the equivalent of "spherical cows in a vacuum" because, I for one am not a day trader, production manager, broker etc, and while some may be, I just hope they're here for fun too.

Use the force without consent and the court wont acquit you even if you are a card carryin', robe wearin' Jedi.

James Baboli
Warp to Pharmacy
#16 - 2015-01-05 19:49:26 UTC
Jenshae Chiroptera wrote:
I argue that multi-boxing has over supplied the market and that is why mineral prices are so low.

Before you say they are now banned and we should see a drop - there is huge, absolutely mind blowing stock piles of ore and minerals we still need to get through. You probably won't see what this ban has done for another year.


As in the multiboxer change thread, I will repeat that the impact on miners who are willing to spend about 1 minute in 3 actually clicking buttons is minimal. This change reduces the ease slightly, but it is extremely easy to do manually, without any software support, much less the VFX and window management that are still legal post broadcasting-ban.

As for a year, nope. As the depletion rate on the stockpiles increases, they change their buy orders and sell orders, as the people with giant piles of ore or minerals sitting around usually aren't the miners themselves.

Talking more,

Flying crazier,

And drinking more

Making battleships worth the warp