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Plex Prices

First post
Author
motie one
Secret Passage
#861 - 2015-10-01 11:34:52 UTC  |  Edited by: motie one
Ok you believe that Plex is a healthy balanced market, with no artificial shortages, and that there is some mechanic, for transferring in game effort into real currency, to enable Plex purchases from CCP or others, to allow them to be brought into game, to provide the required balance.

You may mean purely Buying subscription time from CCP, of course that is a way for players to keep playing but does not provide any plex supply side balance within game.

I do not believe there is a legal method for players to create Plex or create any alternative equivalent product.
I would suggest a legal method would be desireable. Otherwise we have a self sustaining feedback loop forever driving prices higher, and the only balancing feedback mechanism is CCP injecting plex manually into the market.

This suits those who have control of stocks and distribution, for historic reasons, So we are always going to disagree.
Bad Bobby
Bring Me Sunshine
In Tea We Trust
#862 - 2015-10-01 11:52:51 UTC
motie one wrote:
Ok you believe that Plex is a healthy balanced market
I didn't say the PLEX market is healthy, I said that your view of what is healthy is scewed.

You seem to think that reducing PLEX price to the extent where it ceases to perform some of it's core functions is healthy for the game.

motie one wrote:
with no artificial shortages
How is it artificial? It's a free market, where every actor in the market is free to do as they wish. There would only be an artificial shortage if CCP was restricting or limiting the number of PLEX that get created, which they are not.

motie one wrote:
and that there is some mechanic, for transferring in game effort into real currency, to enable Plex purchases from CCP or others, to allow them to be brought into game,
I said nothing of the sort. That mechanic only existed legally during the period that collector's editions were available for purchase via PLEX. You choose to ignore the fact that players can create PLEX whenever they wish to do so, but spending RL currency.

motie one wrote:
to provide the required balance.
And what balance is this? What method do you advocate for restoring this mystical balance that will not create a greater evil and do more harm than good?

motie one wrote:
So we are always going to disagree.
Of course we will, while you remain delusional and comitted to your personal agenda beyond all sense and reason.
motie one
Secret Passage
#863 - 2015-10-01 12:12:51 UTC
Well if disagreeing, means the absense of sense and reason, let me ask the following question.

Take any commodity.
There are balances within game, for example if mexallon becomes overpriced for demand, then demand drops, people use an alternative in the short term ie buying premade ships rather than manufacturing. The situation only returns to a balanced or healthy state when supply rises to match, People Mine more, salvage more, and then the increased supply means the price drops to create an equilibrium.

Please explain the "IN GAME" balancing mechanisms for Plex.
And explain how in their absense any balance can be achieved without CCP injecting Plex to try to provide temporary liquidity.

Without an In Game balance machanism the Product will continously increase in price in the long term at an exponentially increasing rate.

And it will forever cease to be used for Redemption into Pilots services. Is that "healthy"?
Bad Bobby
Bring Me Sunshine
In Tea We Trust
#864 - 2015-10-01 12:46:34 UTC
motie one wrote:
Well if disagreeing, means the absense of sense and reason
No, but repeatedly asking for an explanation that has already been given several times in different wording in the good natured effort to break through your delusion is.

motie one wrote:
Please explain the "IN GAME" balancing mechanisms for Plex.
It's called the free market. Maybe you have heard of it? It allows people to pay more for things when demand outstrips supply, so as to incentivise more production. It allows people to pay less for things when supply exceeds demand, so as to incentivise a reduction. It's very simple and it works really rather well.

motie one wrote:
And explain how in their absense any balance can be achieved without CCP injecting Plex to try to provide temporary liquidity.
Explain to me this concept of balance that the question is predicated upon?

motie one wrote:
Without an In Game balance machanism the Product will continously increase in price in the long term at an exponentially increasing rate.
Citation or proof?

motie one wrote:
And it will forever cease to be used for Redemption into Pilots services.
Citation or proof?

From the perspective of someone outside of your delusional bubble this conversation looks like this:

"Where are the apples? There are no apples!"
"What about the ones on that apple tree there?"
"Where are the apples? There are no apples!"
"Seriously mate, can't you see all the apples on that tree?"
"Where are the apples? There are no apples!"
"Here, take this apple."
"Where are the apples? There are no apples!"
"There are plenty of apples, you are quite mad."

Sadly where everyone else sees apples, you only see oranges. It isn't our fault.
motie one
Secret Passage
#865 - 2015-10-01 13:29:20 UTC  |  Edited by: motie one
You totally ignored the question.

Answering a different one and calling me silly doesn't count.

The long and short of it is that a free market only functions if there is the ability for the supply side and the demand site to create an equilibrium.

In the absence of one side, we see what we see.

I simply request that such a strategic product has the means within it, to create an equilibrium.

This is not a fixed price, although there are arguments for and against that, it is the equilibrium where there is a market, and the product has customers who are willing to purchase them for use. They could be 100m or 100 Bil, if the inherent value of the commodity justifies that, and the market responds accordingly.

As it is, the inherent value of the product, is currently purely a token for market exchange/speculative storage , and within game are no longer being used in the majority for exchange to pilot's services. It seems that you think I am mistaken in believing that plex has such a role?

But cut the bits you like out of that and give an answer to points I didn't raise.
Elizabeth Norn
Nornir Research
Nornir Empire
#866 - 2015-10-01 13:52:36 UTC  |  Edited by: Elizabeth Norn
motie one wrote:
You totally ignored the question.


Hey! That's our line.

Subsidized apple juice for everyone!

Quote:
They could be 100m or 100 Bil, if the inherent value of the commodity justifies that, and the market responds accordingly.


The inherent value is 30 days of game time, what's wrong with 1.2b ISK if that's what being paid? Speculating on whether CCP is selling them is silly as we simply don't have the data.
Trix Andrard
Doomheim
#867 - 2015-10-01 14:11:51 UTC
Avoiding the question and calling on the person to answer the idea is somehow understood as a reasonable thing around here it seems.

Determinism seems to be something culturally hardwired for some people.

Carnal rule of gun trade: Never pick up a gun and join the costumers.

Work around spies for a while, and you learn to be careful when it looks like you're getting what you want.

motie one
Secret Passage
#868 - 2015-10-01 14:23:33 UTC  |  Edited by: motie one
Elizabeth Norn wrote:
motie one wrote:
You totally ignored the question.


Hey! That's our line.

Subsidized apple juice for everyone!

Quote:
They could be 100m or 100 Bil, if the inherent value of the commodity justifies that, and the market responds accordingly.


The inherent value is 30 days of game time, what's wrong with 1.2b ISK if that's what being paid? Speculating on whether CCP is selling them is silly as we simply don't have the data.


Absolutely nothing is wrong If players feel that is a price that gives value when redeeming for pilots services.

If however it is Just being exchanged as a Token, to score market games, and It is no longer being used in the main as a means of pilots extending their game time or other pilots services, then that raises serious questions, that some wish us not to ask.

Whilst there is absolutely not a "right price" there is a price where Plex ceases to be other than a Token to be sold stored and resold. And the use of it as a means of purchasing pilots services via ISK in the main ceases.

Unfortunately as there is no feedback mechanism in game to correct that, we are unable to mine, manufacture, or invent Plex to enable a working free market, so we are reliant on the good will of traders and speculators, to show restraint and freedom from self interest.

Wonder how that's working?
Bad Bobby
Bring Me Sunshine
In Tea We Trust
#869 - 2015-10-01 15:15:11 UTC  |  Edited by: Bad Bobby
motie one wrote:
You totally ignored the question.
I didn't. I answered it directly. You just ignored the answer.

I've answered it several times and each time you ignored or dismissed the answer.

How many times can I answer the same question, taking different approaches each time?

motie one wrote:
The long and short of it is that a free market only functions if there is the ability for the supply side and the demand site to create an equilibrium.
Which is what we have and the price is the price.

Why exactly do you think that the current method of producing PLEX is to be ignored? You have exactly what you asked for, I've pointed at it repeatedly, but you choose to ignore and dismiss it. I can't really help you with that. The apples are there, whether you choose to see them or not.

motie one wrote:
As it is, the inherent value of the product, is currently purely a token for market exchange/speculative storage , and within game are no longer being used in the majority for exchange to pilot's services.
Citation or proof?

You continue to say these things, but you have nothing at all to back it up. Even when CCP state publicly that everything is fine and the sub/PLEX balance is within acceptable limits, you just don't accept it.

motie one wrote:
It seems that you think I am mistaken in believing that plex has such a role?
I believe PLEX has several roles. Everyone but you, it seems, believes this. It's understandable why, since CCP has said as much and CCP has continued to add new purposes to PLEX.

motie one wrote:
But cut the bits you like out of that and give an answer to points I didn't raise.
Given how many posts I've made in response to yours and how many of your points I have dealt with, I don't see you have any kind of argument there. You are just banging on with the same old line which has no justification whatsoever.

Anyway, this discussion ceased to fun or helpful to anyone. As I said initially, I engaged you in conversation on this subject against my better judgement. You are clearly not going to make any progress and it's no skin off my nose if you continue to be delusional and frustrated.
Teckos Pech
Hogyoku
Goonswarm Federation
#870 - 2015-10-01 15:20:13 UTC
motie one wrote:
Teckos Pech wrote:
motie one wrote:

Possibly, the time may have come for the ability to manufacture Plex in game, using in game WIDELY available purchasable NPC commodities.


Okay, I'll be nice here on this one.

This will never happen and is stupid beyond belief (trust me this is the nice response). PLEX are a revenue source for CCP. Allowing them to be "made" in game will do absolutely nothing but reduce CCP's revenue.



Lots of information in the previous post, hard to tell to be honest, whether it is an attempt to provide disinformation through obscuration, or genuinely felt. I will assume it is genuine, as I can be nice too.

Lets address just this one post in isolation.

Firstly do you REALLY believe that the customers who wish to grind plex are the same customers who would purchase plex outside of the game to buy isk. They HAVE the isk already and wish to turn it into Pilot services. No one in their right mind would buy plex out of game and exchange it, where they could buy gametime at a far cheaper rate.
The very definition of someone who Buys Plex to exchange for isk, is that they have insufficient ISK. They Need isk and Are the ones who sell them for ISK.

Grinding ISk to buy (or make) Plex in game to reexchange for Isk Is stupid action, and is not going to happen. There is No benefit to a player.

Therefore They are not Buying Plex in real life cash, THEY are not a loss or going to be, to CCP sales of Plex.
The ability to turn player effort and isk into Plex, by building them, Is going to have no effect on the income to CCP, other than the price of plex will have greater stability. CCP will determine the inputs/materials. Price going forward would be set by supply and demand and whether it is less effort/value to make or buy the finished form.

The only End users are those who wish to use it for It's intended purposes. Those purposes sterilise the product, removing them from the game, and sterilising their inputs. ie permenantly Removed from the economy.

It does not automatically mean cheaper prices. But it does mean balanced.

Secondly, as I repeatedly tried to explain (but is conviniently ignored) I stated I was not in favour of ANY particular mechanism, I suggest a Balancing mechanism, such as exists for every other item, to allow player actions to influence supply. ie maxallon goes up, miners decide it is worth mining more, supply increases, price balances, the same mechanisms exist for manufacturing, exploration, missioning, and every other activity and commodity.

No stabilisation is possible by player action of a strategic asset like plex other than letting one's account expire.
Only on the demand side do we have an influence, and only in a way that is self destructive.

I do however find it hard to believe that any player would see this as a positive and desireable situation unless they have a vested interest that is stronger than the desire for a healthy game.

Of course in the interests of being nice, I could imagine one becomes so distracted by the pretty graphs, one might seek enlightenment in them, Leading to them not seeing the underlying structure and reality of the situation.

Note when there is the smell of sulphur in the air, and the ground rumbles underfoot, looking for auguries in chicken entrails, whilst making one look like an oracle, and wise, does not really ensure survival.


Why do you write these long meandering posts that really don't say much of anything. That first paragraph is a horrible mess. You seem to be contradicting yourself. You write this, "No one in their right mind would buy plex out of game and exchange it, where they could buy gametime at a far cheaper rate." then you write this, "The very definition of someone who Buys Plex to exchange for isk, is that they have insufficient ISK. They Need isk and Are the ones who sell them for ISK."

Here is the deal, some people like to play Eve. Some of those people do not want to or do not have the time to grind for ISK. So buying a PLEX and selling it in game is a good thing for them and for the person buying the PLEX. It is also good for CCP as they make some extra money. It boils down to this, for $20 a player can become an Eve billionaire. Seed money to start trading or invention...or whatever. Or they could drop it on ships for PvP and skip the grinding for ISK.

And making PLEX in game will side step the current fact that right now to get a PLEX somebody had to initially give CCP $20. It is a bad, bad, bad idea.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

Teckos Pech
Hogyoku
Goonswarm Federation
#871 - 2015-10-01 15:34:25 UTC
motie one wrote:
Ok you believe that Plex is a healthy balanced market, with no artificial shortages, and that there is some mechanic, for transferring in game effort into real currency, to enable Plex purchases from CCP or others, to allow them to be brought into game, to provide the required balance.

You may mean purely Buying subscription time from CCP, of course that is a way for players to keep playing but does not provide any plex supply side balance within game.

I do not believe there is a legal method for players to create Plex or create any alternative equivalent product.
I would suggest a legal method would be desireable. Otherwise we have a self sustaining feedback loop forever driving prices higher, and the only balancing feedback mechanism is CCP injecting plex manually into the market.

This suits those who have control of stocks and distribution, for historic reasons, So we are always going to disagree.



How can there be an artificial shortage? If somebody buys something and holds it thinking it will gain in value down the road, that is not creating an artificial shortage...that is how market speculation works. And market speculation is a good thing because it can help send out the right price signals.

For example, some speculators might think for :reasons: that the price of gasoline is going to go up. So they buy some and are going to hold it and sell it if the price does go up. By doing that they could very well cause the price to go up. Especially if they buy enough and other market participants notice and jump in too. So now the price is higher sending a signal to producers: make more.

That is what a high price does, it sends a signal: we need more resources allocated to the production of this good. This is why in a supply and demand graph if the demand curve shifts outwards, "we move up" the supply curve. The supply curve is basically the sum of each firms marginal cost curve...and as the price goes up that means that marginal cost is below the marginal benefit (the price) so firms should make more of the good.

Market speculation is not a bad thing. Feel free to think otherwise, but it is foolish view based on flawed thinking.

Quote:
Economic activities that generate output and employment for many hinge critically on how these prices behave. A farmer's motivation to cultivate wheat or choose rice over wheat depends on the price he gets when he takes the produce to the market. A car manufacturer's profit depends on what happens to steel prices; an IT company's profits can be hugely impacted with a change in exchange rates; and the balance sheets of central banks are affected by changing prices of the large gold reserves they hold.

The risk to economic activity from unknown future prices is largely mitigated by speculative activity. Prices do not remain constant because the underlying factors that affect them change with time. A poor monsoon alters the price of agricultural produce and a weakening global economy impacts the price of gold. Speculators play the critical role of bringing changing information into the price. Speculative markets are actually markets for information.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

motie one
Secret Passage
#872 - 2015-10-01 15:35:42 UTC
Teckos Pech wrote:
motie one wrote:
Teckos Pech wrote:
motie one wrote:

Possibly, the time may have come for the ability to manufacture Plex in game, using in game WIDELY available purchasable NPC commodities.


Okay, I'll be nice here on this one.

This will never happen and is stupid beyond belief (trust me this is the nice response). PLEX are a revenue source for CCP. Allowing them to be "made" in game will do absolutely nothing but reduce CCP's revenue.



Lots of information in the previous post, hard to tell to be honest, whether it is an attempt to provide disinformation through obscuration, or genuinely felt. I will assume it is genuine, as I can be nice too.

Lets address just this one post in isolation.

Firstly do you REALLY believe that the customers who wish to grind plex are the same customers who would purchase plex outside of the game to buy isk. They HAVE the isk already and wish to turn it into Pilot services. No one in their right mind would buy plex out of game and exchange it, where they could buy gametime at a far cheaper rate.
The very definition of someone who Buys Plex to exchange for isk, is that they have insufficient ISK. They Need isk and Are the ones who sell them for ISK.

Grinding ISk to buy (or make) Plex in game to reexchange for Isk Is stupid action, and is not going to happen. There is No benefit to a player.

Therefore They are not Buying Plex in real life cash, THEY are not a loss or going to be, to CCP sales of Plex.
The ability to turn player effort and isk into Plex, by building them, Is going to have no effect on the income to CCP, other than the price of plex will have greater stability. CCP will determine the inputs/materials. Price going forward would be set by supply and demand and whether it is less effort/value to make or buy the finished form.

The only End users are those who wish to use it for It's intended purposes. Those purposes sterilise the product, removing them from the game, and sterilising their inputs. ie permenantly Removed from the economy.

It does not automatically mean cheaper prices. But it does mean balanced.

Secondly, as I repeatedly tried to explain (but is conviniently ignored) I stated I was not in favour of ANY particular mechanism, I suggest a Balancing mechanism, such as exists for every other item, to allow player actions to influence supply. ie maxallon goes up, miners decide it is worth mining more, supply increases, price balances, the same mechanisms exist for manufacturing, exploration, missioning, and every other activity and commodity.

No stabilisation is possible by player action of a strategic asset like plex other than letting one's account expire.
Only on the demand side do we have an influence, and only in a way that is self destructive.

I do however find it hard to believe that any player would see this as a positive and desireable situation unless they have a vested interest that is stronger than the desire for a healthy game.

Of course in the interests of being nice, I could imagine one becomes so distracted by the pretty graphs, one might seek enlightenment in them, Leading to them not seeing the underlying structure and reality of the situation.

Note when there is the smell of sulphur in the air, and the ground rumbles underfoot, looking for auguries in chicken entrails, whilst making one look like an oracle, and wise, does not really ensure survival.


Why do you write these long meandering posts that really don't say much of anything. That first paragraph is a horrible mess. You seem to be contradicting yourself. You write this, "No one in their right mind would buy plex out of game and exchange it, where they could buy gametime at a far cheaper rate." then you write this, "The very definition of someone who Buys Plex to exchange for isk, is that they have insufficient ISK. They Need isk and Are the ones who sell them for ISK."

Here is the deal, some people like to play Eve. Some of those people do not want to or do not have the time to grind for ISK. So buying a PLEX and selling it in game is a good thing for them and for the person buying the PLEX. It is also good for CCP as they make some extra money. It boils down to this, for $20 a player can become an Eve billionaire. Seed money to start trading or invention...or whatever. Or they could drop it on ships for PvP and skip the grinding for ISK.

And making PLEX in game will side step the current fact that right now to get a PLEX somebody had to initially give CCP $20. It is a bad, bad, bad idea.


Try reading the "meandering" post again and you might not miss the entire point.
Teckos Pech
Hogyoku
Goonswarm Federation
#873 - 2015-10-01 15:58:07 UTC
motie one wrote:


Try reading the "meandering" post again and you might not miss the entire point.


I did and unfortunately its a mish-mash of gibberish and nonsense. For example:

Quote:
Secondly, as I repeatedly tried to explain (but is conviniently ignored) I stated I was not in favour of ANY particular mechanism, I suggest a Balancing mechanism, such as exists for every other item, to allow player actions to influence supply.


This mechanism exists. You get out your credit card and buy some PLEX and then put them on the market thereby increasing the supply.

Thing is you don't want to put your money where you mouth is. You want to have subsidized game time which just isn't going to happen.

Then there is this gem of stellar nonsense.

Quote:
No stabilisation is possible by player action of a strategic asset like plex other than letting one's account expire.
Only on the demand side do we have an influence, and only in a way that is self destructive.


Self destructive? What you should have written is "destructive".

And second how is it destructive? That you can't pay for your account by basically grinding ISK for someone else? That you have been priced out of the market? Well pay via cash, buy an entire year and spend what $12.50/month that way.

Also, high ISK prices for PLEX greatly reduce RMT for ISK. Why spend your money on RMT ISK that will come with a high probability you'll be banned and have your wallet drained of that RMT ISK when you can get the same thing totally legally?

Quote:
I do however find it hard to believe that any player would see this as a positive and desireable situation unless they have a vested interest that is stronger than the desire for a healthy game.


Nice example of poisoning the well. You are basically saying anyone who disagrees with you must be one of the people trying to screw over other players. That's bullcrap and you know it...it is also intellectually lazy and dishonest.

Your posts are just horrible amalgams of bad reasoning, contradictory statements, and flawed logic that attacks everyone who disagrees with you.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

Teckos Pech
Hogyoku
Goonswarm Federation
#874 - 2015-10-01 16:18:29 UTC
Elizabeth Norn wrote:


Quote:
They could be 100m or 100 Bil, if the inherent value of the commodity justifies that, and the market responds accordingly.


The inherent value is 30 days of game time, what's wrong with 1.2b ISK if that's what being paid? Speculating on whether CCP is selling them is silly as we simply don't have the data.


This right here. This is the difference between nominal and real values. The inherent value of a PLEX, i.e. its real value, is 30 days of game time. Its nominal value is determined by things like income/wealth in addition to number on the market, etc.* With lots of ISK flowing into the game every single day, people are seeing their in game wealth go up and through competition for the limited number of PLEX on the market are driving the price up.

*See Bad Bobby's post for a list of various factors that can effect the price of PLEX.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

motie one
Secret Passage
#875 - 2015-10-01 16:40:55 UTC  |  Edited by: motie one
Teckos Pech wrote:
Elizabeth Norn wrote:


Quote:
They could be 100m or 100 Bil, if the inherent value of the commodity justifies that, and the market responds accordingly.


The inherent value is 30 days of game time, what's wrong with 1.2b ISK if that's what being paid? Speculating on whether CCP is selling them is silly as we simply don't have the data.


This right here. This is the difference between nominal and real values. The inherent value of a PLEX, i.e. its real value, is 30 days of game time. Its nominal value is determined by things like income/wealth in addition to number on the market, etc.* With lots of ISK flowing into the game every single day, people are seeing their in game wealth go up and through competition for the limited number of PLEX on the market are driving the price up.

*See Bad Bobby's post for a list of various factors that can effect the price of PLEX.


Assuming the person you are discussing issues with is mentally deficient, and ignoring the points that are being raised, is hardly helpful. You do not need to keep harping on the basics.. I know....

What I am seeing is an example of someone skimming through a document, picking on one or two obvious points and taking them out of context without reading the whole thing, and Saying I do not like your conclusions, I have not read it, but you are bad and your conclusions are bad.

I know the market is going up
I know all the reasons why it is, you can even see them in my posts.

What I do not see is a mechanism that counters the feedback that is in place, unlike Every other commodity in the market.
And " Just spend money you tight fisted poor" is not a mechanism to control self reinforcing feedback!

Understand yet? Try reading, understanding, and not from a viewpoint of everything is great, he must be wrong.
Teckos Pech
Hogyoku
Goonswarm Federation
#876 - 2015-10-01 17:10:18 UTC
motie one wrote:
Teckos Pech wrote:
Elizabeth Norn wrote:


Quote:
They could be 100m or 100 Bil, if the inherent value of the commodity justifies that, and the market responds accordingly.


The inherent value is 30 days of game time, what's wrong with 1.2b ISK if that's what being paid? Speculating on whether CCP is selling them is silly as we simply don't have the data.


This right here. This is the difference between nominal and real values. The inherent value of a PLEX, i.e. its real value, is 30 days of game time. Its nominal value is determined by things like income/wealth in addition to number on the market, etc.* With lots of ISK flowing into the game every single day, people are seeing their in game wealth go up and through competition for the limited number of PLEX on the market are driving the price up.

*See Bad Bobby's post for a list of various factors that can effect the price of PLEX.


Assuming the person you are discussing issues with is mentally deficient, and ignoring the points that are being raised, is hardly helpful. You do not need to keep harping on the basics.. I know....

What I am seeing is an example of someone skimming through a document, picking on one or two obvious points and taking them out of context without reading the whole thing, and Saying I do not like your conclusions, I have not read it, but you are bad and your conclusions are bad.

I know the market is going up
I know all the reasons why it is, you can even see them in my posts.

What I do not see is a mechanism that counters the feedback that is in place, unlike Every other commodity in the market.
And " Just spend money you tight fisted poor" is not a mechanism to control self reinforcing feedback!

Understand yet? Try reading, understanding, and not from a viewpoint of everything is great, he must be wrong.


Really, that is just it, you don't seem to know the basics. Your basic position seems to be: I don't like high PLEX prices, therefore high PLEX prices are bad.

Lets try it this way....

Suppose country A and Country B have an exchange rate as follows

ABuck = BBuck.

That is a 1-1 exchange rate. Then country A increases its money supply and in fact, doubles it. Now how many ABucks would it take to buy a BBuck?

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

motie one
Secret Passage
#877 - 2015-10-01 18:06:14 UTC  |  Edited by: motie one
Teckos Pech wrote:
motie one wrote:
Teckos Pech wrote:
Elizabeth Norn wrote:


Quote:
They could be 100m or 100 Bil, if the inherent value of the commodity justifies that, and the market responds accordingly.


The inherent value is 30 days of game time, what's wrong with 1.2b ISK if that's what being paid? Speculating on whether CCP is selling them is silly as we simply don't have the data.


This right here. This is the difference between nominal and real values. The inherent value of a PLEX, i.e. its real value, is 30 days of game time. Its nominal value is determined by things like income/wealth in addition to number on the market, etc.* With lots of ISK flowing into the game every single day, people are seeing their in game wealth go up and through competition for the limited number of PLEX on the market are driving the price up.

*See Bad Bobby's post for a list of various factors that can effect the price of PLEX.


Assuming the person you are discussing issues with is mentally deficient, and ignoring the points that are being raised, is hardly helpful. You do not need to keep harping on the basics.. I know....

What I am seeing is an example of someone skimming through a document, picking on one or two obvious points and taking them out of context without reading the whole thing, and Saying I do not like your conclusions, I have not read it, but you are bad and your conclusions are bad.

I know the market is going up
I know all the reasons why it is, you can even see them in my posts.

What I do not see is a mechanism that counters the feedback that is in place, unlike Every other commodity in the market.
And " Just spend money you tight fisted poor" is not a mechanism to control self reinforcing feedback!

Understand yet? Try reading, understanding, and not from a viewpoint of everything is great, he must be wrong.


Really, that is just it, you don't seem to know the basics. Your basic position seems to be: I don't like high PLEX prices, therefore high PLEX prices are bad.

Lets try it this way....

Suppose country A and Country B have an exchange rate as follows

ABuck = BBuck.

That is a 1-1 exchange rate. Then country A increases its money supply and in fact, doubles it. Now how many ABucks would it take to buy a BBuck?



Dear God!
Looks like talking to you is like discussing nuclear power with a Green.
Frustrating for me and just confusing and stressful for you.

If you paid attention my point is not that the price of plex is too high.
You will need to read my posts to see what my point is.
I know preconceptions are just so much easier.
Teckos Pech
Hogyoku
Goonswarm Federation
#878 - 2015-10-01 18:09:06 UTC
So you don't know.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

motie one
Secret Passage
#879 - 2015-10-01 18:18:49 UTC  |  Edited by: motie one
Teckos Pech wrote:
So you don't know.



Do you want n economics education? Or is it you think there is a simple answer to that question, the answer if you insist is it depends on when you look at it.

I could post 50 pages of text in a more detailed reply, but you probably want it in two words.(and besides you are not paying consultancy fees)

Middle length answer. Economic turmoil, until homeostasis is achieved. Because mechanisms do exist to make that achieveable, unlike a certain product we were meant to be discussing.

I really, really, really hope you are not so incredibly detached from reality to believe this would result in a direct relationship to the exchange rate?
Teckos Pech
Hogyoku
Goonswarm Federation
#880 - 2015-10-01 18:41:32 UTC
motie one wrote:
Teckos Pech wrote:
So you don't know.



Do you want n economics education? Or is it you think there is a simple answer to that question, the answer if you insist is it depends on when you look at it.

I could post 50 pages of text in a more detailed reply, but you probably want it in two words.(and besides you are not paying consultancy fees)

Middle length answer. Economic turmoil, until homeostasis is achieved. Because mechanisms do exist to make that achieveable, unlike a certain product we were meant to be discussing.


No, it is a very, very simple economic model. Simple models can sometimes be good in that they let you isolate certain economic phenomena. In statistics they use something similar as well, they will control for the variables they are not currently interested in. For example, if I want to see if there is a trend in seasonal data and its magnitude I'll control for the seasonality using dummy variables, or maybe a sine function, or even seasonal differencing.

In this case, I was hoping you'd see that the answer is 2. That the increase in the money supply has also influenced the exchange rate. Now that is not the only thing influencing exchange rates, but it is a factor.

So...why is the (implicit) exchange rate worsening with regards to ISK. How come a dollar allows people to buy larger and larger amounts of ISK?

Could it be the ISK entering into the in game economy? Could that be one reason there is an overall trend to the price of PLEX, the mechanism of translating RL money into ISK?

If the answer is yes, trying to screw over CCP from PLEX sales and stabilize the exchange that way is just foolishness on top of vanilla ignorance.

A better solution would be to reconsider something like NS income sources for the typical pilot. Having ISK magically appear in people's wallets for shooting NPC rats probably isn't the best thing. One suggestion is to allow for NS missions, maybe from Concord or something and ramp down rat bounties and grant LP which is and ISK sink.

No, this is not the only thing influence PLEX prices, but it could be one of them. Another thing is that CCP wants to sell more of them. They are a profit maximizing entity and PLEX sales are probably the most profitable item they sell on a per item basis. The suggestion that the players compete with CCP in terms of PLEX sales.... Just. Not. Going. To. Work. CCP is not going to cut its revenue stream and profits. They are not here to subsidize your game time. In fact, it works exactly the other way around. You subsidize CCP either directly via paying your subscription or indirectly by buying a PLEX for ISK that somebody else paid CCP for...and CCP keeps the game up and running. Turning that on its head simply will not work. Ever.

So...suffice it to say, I am not going to ever come to you to learn economics. You have completely turned things on their head and say, "There that will work," when in reality it simply wont. You are bad at making logical arguments, you are bad at economics, and as a result of those two bad things your ideas about PLEX are bad. Really bad.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online