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CSM notes on faucets & sinks

Author
Kithran
#41 - 2013-01-17 09:37:44 UTC
Candy Oshea wrote:
Small world ^_^

tis.

An Eve Story, that brings some things up id like answered. Learned alot today, plan on keeping on Bear

i introduced a guy i worked with to eve recently, was interesting to watch him develop a sense of things EVE. I gave him 100m Starter isk to get him set up, plenty for skillbooks and a few ships.

He started out with 1 character mining alot, then after he was teased about it at work, doing the missions etc, he wasn't skilled enough to handle the level 3 missions so he stuck to level 2's.

Arrowi took an eve break for new WoW exp.Oops
ArrowFast forward 3 Months
Arrowwhooash back playing eve

Shortly after i came back, i caught up with him in game (he got fired from work, so didn't have any way to get in touch, to check on his progress)

He said he "plexed up" bought them of the eve website, bought 3 characters and now runs 4 accounts, 3 in a class 2 wormhole and 1 in highsec station Trading. Shocked

Its an interesting behavior pattern, when i asked him why did you do that? his response was simple,"i couldn't make any isk.", he figured if he bought a tengu alt, and a salvager/prober alt, that they would. Making isk is a big part of the hook for alot of players that play the game, I introduced him to a few players, that lived in a c2 wh, he was amazed at the amount of isk the wh dwellers was making, but his skills couldn't handle it.

Now, what if we applied some math to the actual new players (not alts) that come to eve, buy 15b+ in isk directly from the print machine. and say 20% of say 500? actual new players. thats alot of plex & Isk changing hands.

When he bought the plex he received 12 newly npc created items, with a value of 500m.? i understand the only thing that gets created is the cards, which are destroyed when used by players. however he still ends up with the isk. which he has splashed around here and there, becoming somewhat of a faucet for builders and character traders.

IdeaWould it be safe to say that a high% of the daily volume is actually new plex cards.? Discuss.
IdeaWhat are the ramifications of this behaviour to the economy?

Sorry No TL:DR Pirate


Short answer no.

As with the situation where a ship is destroyed when someone buys a plex with real money then sells it there is no real change in the amount of isk in game - the person who sold the plex personally has gained (say) 560 million isk however at the same time the person who bought that plex has lost 560 million.

There is in fact a very minor decrease in total isk in game due to market fees.

Kithran
Candy Oshea
Techfree Investment Group
#42 - 2013-01-17 10:04:17 UTC
Kithran wrote:

Short answer no.

As with the situation where a ship is destroyed when someone buys a plex with real money then sells it there is no real change in the amount of isk in game - the person who sold the plex personally has gained (say) 560 million isk however at the same time the person who bought that plex has lost 560 million.

There is in fact a very minor decrease in total isk in game due to market fees.

Kithran


Thanks for your answer. little confused on why your saying 'short anwser no' though, agree with what you had written above as its essentially the same as the last paragraph of what i wrote?

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

OkaskiKali
Aussie Carebear OverLords
#43 - 2013-01-17 10:08:55 UTC
Confrontation fuels any economy.

CCP should do more to fuel confrontation... I have said this for years now - give the people something to shoot at that will either..

1. Ruin someones day or
2. cause the owner to defend it.

I would like to see an Incursion type areana but with perhaps CCP running these so called live events.

Or perhaps more tounament based areana.... just something to make people want to spend isk.

I have about 5bil in the bank, anything i earn goes into a PVP ship. I personally hate grinding but find incursions a good and enjoyable pass time. I don't think incursions are the reason for increase in PLEX. Its quite possible due to the effect of moon mining. (dont get confused i am talking about moon mining and not the act of reacting).

Role eve back 5 years at a time when small roaming groups were frequent - thats eve at its best and i think the nano nerf stopped a lot of roaming gangs.

Now i use t1 cruisers and destroyers becuase they are cheap and good fun, and with the act of being blobbed its makes taking a more expensive ship out roaming hard to justify.

Perhaps what we need is a different types of fuel for all types of ships and not just capitals..that is an item managed by CCP and not a player based thing or, certain items in game will contain a VAT payment.

You can make a lot of accounts to real life. people will spend money on new items so we need new items - however this may not be as simple as it seems since adding new items means so many different other paths need to be walked.
RubyPorto
RubysRhymes
#44 - 2013-01-17 10:11:07 UTC  |  Edited by: RubyPorto
Candy Oshea wrote:
Kithran wrote:

Short answer no.

As with the situation where a ship is destroyed when someone buys a plex with real money then sells it there is no real change in the amount of isk in game - the person who sold the plex personally has gained (say) 560 million isk however at the same time the person who bought that plex has lost 560 million.

There is in fact a very minor decrease in total isk in game due to market fees.

Kithran


Thanks for your answer. little confused on why your saying 'short anwser no' though, agree with what you had written above as its essentially the same as the last paragraph of what i wrote?


Nope. Because you called it a faucet.

ISK Faucets are places where ISK enters the Economy (ISK is created by NPCs and given to players).
ISK Sinks are places where ISK leaves the Economy (ISK is destroyed by Players giving it to NPCs).

Trades between players are neither sinks nor faucets. So except for the minor sink of Broker Fees/Taxes, PLEX is in no way a Sink or Faucet.

"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

Candy Oshea
Techfree Investment Group
#45 - 2013-01-17 10:13:33 UTC  |  Edited by: Candy Oshea
RubyPorto wrote:

Nope. Because you called it a faucet.


yes my mate spent 15b on characters & tengus :\ and i called it a faucet, re-read it. "kind of like a faucet" derp.

as in specifically my mate leaking 15b derp.

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

OkaskiKali
Aussie Carebear OverLords
#46 - 2013-01-17 10:20:14 UTC  |  Edited by: OkaskiKali
Perhaps clones need to have an increase in price?

I would pay ISK (and to a certain degree real money) for a NPC service that moves all of my assets that are scattered throughout eve to one location.

Perhaps another is for people who rat in high sec mission or incursion that activity is only available if you are part of a NPC corp?

The act of JC-ing to have a cost?
The act of using the fitting tool for ships to have a cost?
Candy Oshea
Techfree Investment Group
#47 - 2013-01-17 10:26:38 UTC
OkaskiKali wrote:
Perhaps clones need to have an increase in price?

I would pay ISK (and to a certain degree real money) for a NPC service that moves all of my assets that are scattered throughout eve to one location.

Perhaps another is for people who rat in high sec mission or incursion that activity is only available if you are part of a NPC corp?

The act of JC-ing to have a cost?


Great ideas, J-Cing especially not many new players do this. the clones are effected by new players, but as with my example above most new ones i know buy plex. so can probs afford it anyway vOv

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

Debra Tao
Perkone
Caldari State
#48 - 2013-01-17 10:31:44 UTC  |  Edited by: Debra Tao
OkaskiKali wrote:
Confrontation fuels any economy.

CCP should do more to fuel confrontation... I have said this for years now - give the people something to shoot at that will either..

1. Ruin someones day or
2. cause the owner to defend it.

I would like to see an Incursion type areana but with perhaps CCP running these so called live events.

Or perhaps more tounament based areana.... just something to make people want to spend isk.

I have about 5bil in the bank, anything i earn goes into a PVP ship. I personally hate grinding but find incursions a good and enjoyable pass time. I don't think incursions are the reason for increase in PLEX. Its quite possible due to the effect of moon mining. (dont get confused i am talking about moon mining and not the act of reacting).

Role eve back 5 years at a time when small roaming groups were frequent - thats eve at its best and i think the nano nerf stopped a lot of roaming gangs.

Now i use t1 cruisers and destroyers becuase they are cheap and good fun, and with the act of being blobbed its makes taking a more expensive ship out roaming hard to justify.

Perhaps what we need is a different types of fuel for all types of ships and not just capitals..that is an item managed by CCP and not a player based thing or, certain items in game will contain a VAT payment.

You can make a lot of accounts to real life. people will spend money on new items so we need new items - however this may not be as simple as it seems since adding new items means so many different other paths need to be walked.



I think you and Raven are both wrong about that. Whereas in real life consumption is the fuel of the economy in EVE it is not so good.

If everyone start to pvp more then there will be more circulation of isk so there will be inflation, that's for sure whereas most of the source of income are independant from the player's market so at the end it would be bad for mission runners, plexers and guys doing incursions...

In real life we can see that when a country starts to develop quickly there is a big inflation (see : China) but it is still a good thing for that country as unemployment is reduced and the counrty can "catch up" with the more developped countries, there are no "developped countries" in EVE and no unemployment... The reasoning doesn't apply here.



That being said i love PvP but if we just look at inflation it's debatable to promote a lot more pvp.
OkaskiKali
Aussie Carebear OverLords
#49 - 2013-01-17 10:46:04 UTC
Candy Oshea wrote:
OkaskiKali wrote:
Perhaps clones need to have an increase in price?

I would pay ISK (and to a certain degree real money) for a NPC service that moves all of my assets that are scattered throughout eve to one location.

Perhaps another is for people who rat in high sec mission or incursion that activity is only available if you are part of a NPC corp?

The act of JC-ing to have a cost?


Great ideas, J-Cing especially not many new players do this. the clones are effected by new players, but as with my example above most new ones i know buy plex. so can probs afford it anyway vOv


If the eve economy needs "rebalancing", and the reason why it is out of sink is becuase of NPC payouts (im interested to know if that includes incursions), then perhaps an analysis needs to be conducted into the activities of how you get an NPC payout.

If we go along the line of skillbooks - we have a lot of different flavoured missiles and ammo, why not create a new skillbook chain for EMP M ammo, a skillbook for Republic Fleet EMP M ammo etc etc. but eventually what you will always get is once someone has bought the item your nautual injection of ISK will return.

Perhaps there needs to be more emphasis on earning LP's and less on ISK in those areas that people regard as "safe areas of eve".

OkaskiKali
Aussie Carebear OverLords
#50 - 2013-01-17 11:02:17 UTC
Debra Tao wrote:
OkaskiKali wrote:
Confrontation fuels any economy.

CCP should do more to fuel confrontation... I have said this for years now - give the people something to shoot at that will either..

1. Ruin someones day or
2. cause the owner to defend it.

I would like to see an Incursion type areana but with perhaps CCP running these so called live events.

Or perhaps more tounament based areana.... just something to make people want to spend isk.

I have about 5bil in the bank, anything i earn goes into a PVP ship. I personally hate grinding but find incursions a good and enjoyable pass time. I don't think incursions are the reason for increase in PLEX. Its quite possible due to the effect of moon mining. (dont get confused i am talking about moon mining and not the act of reacting).

Role eve back 5 years at a time when small roaming groups were frequent - thats eve at its best and i think the nano nerf stopped a lot of roaming gangs.

Now i use t1 cruisers and destroyers becuase they are cheap and good fun, and with the act of being blobbed its makes taking a more expensive ship out roaming hard to justify.

Perhaps what we need is a different types of fuel for all types of ships and not just capitals..that is an item managed by CCP and not a player based thing or, certain items in game will contain a VAT payment.

You can make a lot of accounts to real life. people will spend money on new items so we need new items - however this may not be as simple as it seems since adding new items means so many different other paths need to be walked.



I think you and Raven are both wrong about that. Whereas in real life consumption is the fuel of the economy in EVE it is not so good.

If everyone start to pvp more then there will be more circulation of isk so there will be inflation, that's for sure whereas most of the source of income are independant from the player's market so at the end it would be bad for mission runners, plexers and guys doing incursions...

In real life we can see that when a country starts to develop quickly there is a big inflation (see : China) but it is still a good thing for that country as unemployment is reduced and the counrty can "catch up" with the more developped countries, there are no "developped countries" in EVE and no unemployment... The reasoning doesn't apply here.



That being said i love PvP but if we just look at inflation it's debatable to promote a lot more pvp.


Its going to get interesting when Dust 514 becomes live.
Bugsy VanHalen
Society of lost Souls
#51 - 2013-01-17 14:29:38 UTC  |  Edited by: Bugsy VanHalen
Candy Oshea wrote:
RubyPorto wrote:

Nope. Because you called it a faucet.


yes my mate spent 15b on characters & tengus :\ and i called it a faucet, re-read it. "kind of like a faucet" derp.

as in specifically my mate leaking 15b derp.

It is NOT a faucet.

Your friend got the 15 Bil from selling PLEX. That isk came from players who bought those PLEX. The isk was not created out of thin air. It was already in the game. it just changed hands. Had he payed CCP and magically had the isk appear in his wallet then it would be an isk faucet. But he did not recieve isk, he received items he sold for isk. That isk was already in the game, just in someone else's wallet. Neither is PLEX an isk sink as when it is used, it is the item removed from the game. The isk just changes hand between the player buying the PLEX and the player selling the PLEX. If the PLEX was converted to AURUM it would be an AURUM faucet, but still not an isk faucet as it does not affect the total amount of isk in game. only whose pocket that isk is in.

Isk sinks and Facets has nothing to do with what character holds the isk. Or how much isk changes hands. It is a change in the total amount of isk in circulation within the in game economy.

A faucet is new isk coming into the game that previously did not exist. for example, bounties when you kill an NPC. or isk payouts for mission rewards. Basically any isk recieved by a player that did not come from another player. that isk is new, not just new to your character, but newly generated in the game. it did not come from another buying goods from you. it was created from nothing.

A sink is existing isk in the game being removed. having to buy a new ship is not an isk sink, as that isk does not leave the game, it goes to who ever you bought the ship off of. When a ship gets destroyed is it an isk sink? No, Why? Even if the total isk value of the items destroyed is greater than the value of the dropped loot plus the insurance payout. It would seem like an isk sink, but really no isk was actually removed from the game.

The minerals used to build that ship and its modules were removed from the game, but no isk. For example a battleship fully fitted is worth say 1 biliion isk. It gets destroyed, it drops 500M worth of loot, and the insurance payout is 200M. The owner of the ship lost 1 billion minus the 200M insurance so 800M. but the value lost was only 300M as 500M worth of loot dropped. The loot dropped belongs to someone else, but its value is still retained in the game. It would seem that this would be a 300M isk sink, but really it was minerals destroyed not isk, minerals mined by someone, and sold for isk. The isk payed for those minerals is still in the game.

Since minerals are constantly regenerated through re-spawning asteroid belts no actual isk was lost. So even though the owner of the ship lost 800M worth of assets, and 300M of assets were destroyed with no compensation, no actual isk was removed from the game as the isk used to purchase the ship and all its fittings went into the hands of another player. Had the ship been bought from an NPC then its total value would have been an isk sink. But since the isk stayed in the game going into the hands of the seller of the ship, no actual isk left the game when the ship was destroyed, so the actual sink is zero.

The only true isk sinks are when isk is given to an NPC. Sure there are often items brought into the game but the isk does not simply change hands it is removed. For example when you buy a skill book for 500M the isk you spent goes to the NPC and is removed from the game. You can then sell that skill book possibly for more than you paid for it, 550M, but that isk is just changing hands. You are left with a net gain of 50M but the 500M you paid is still gone from the game. The 550M you got was just isk changing hands from another player within the game. The game as a whole had a net loss of 500M isk when that skillbook was purchased from the NPC.

Bounties and mission payouts generate isk from nothing, while activities such as running wormhole sites do not generate isk. You may thing, wait, running wormhole sites makes more isk than missions or ratting. How can it not be a faucet? Well, sleepers in wormhole sites do not pay bounties they drop items, those items, such as nano ribbons, are then sold to other players for isk. No new isk is generated, it is just existing isk changing hands. That is the difference. New isk being brought into the game generated from nothing is a faucet, while isk already in the game changing hands between players is not a faucet no matter how much isk changes hands. How much isk goes in and out of your character wallet makes no difference, it is how much isk goes in and out of the game without coming from or going to another player.
Bugsy VanHalen
Society of lost Souls
#52 - 2013-01-17 14:30:00 UTC  |  Edited by: Bugsy VanHalen
opps double post.
Candy Oshea
Techfree Investment Group
#53 - 2013-01-17 14:47:04 UTC
Bugsy VanHalen wrote:
Candy Oshea wrote:
RubyPorto wrote:

Nope. Because you called it a faucet.


yes my mate spent 15b on characters & tengus :\ and i called it a faucet, re-read it. "kind of like a faucet" derp.

as in specifically my mate leaking 15b derp.

It is NOT a faucet.

Your friend got the 15 Bil from selling PLEX. That isk came from players who bought those PLEX. The isk was not created out of thin air. It was already in the game. it just changed hands. Had he payed CCP and magically had the isk appear in his wallet then it would be an isk faucet. But he did not recieve isk, he received items he sold for isk. That isk was already in the game, just in someone else's wallet. Neither is PLEX an isk sink as when it is used, it is the item removed from the game. The isk just changes hand between the player buying the PLEX and the player selling the PLEX. If the PLEX was converted to AURUM it would be an AURUM faucet, but still not an isk faucet as it does not affect the total amount of isk in game. only whose pocket that isk is in.

Isk sinks and Facets has nothing to do with what character holds the isk. Or how much isk changes hands. It is a change in the total amount of isk in circulation within the in game economy.

A faucet is new isk coming into the game that previously did not exist. for example, bounties when you kill an NPC. or isk payouts for mission rewards. Basically any isk recieved by a player that did not come from another player. that isk is new, not just new to your character, but newly generated in the game. it did not come from another buying goods from you. it was created from nothing.

A sink is existing isk in the game being removed. having to buy a new ship is not an isk sink, as that isk does not leave the game, it goes to who ever you bought the ship off of. When a ship gets destroyed is it an isk sink? No, Why? Even if the total isk value of the items destroyed is greater than the value of the dropped loot plus the insurance payout. It would seem like an isk sink, but really no isk was actually removed from the game.

The minerals used to build that ship and its modules were removed from the game, but no isk. For example a battleship fully fitted is worth say 1 biliion isk. It gets destroyed, it drops 500M worth of loot, and the insurance payout is 200M. The owner of the ship lost 1 billion minus the 200M insurance so 800M. but the value lost was only 300M as 500M worth of loot dropped. The loot dropped belongs to someone else, but its value is still retained in the game. It would seem that this would be a 300M isk sink, but really it was minerals destroyed not isk, minerals mined by someone, and sold for isk. The isk payed for those minerals is still in the game.

Since minerals are constantly regenerated through re-spawning asteroid belts no actual isk was lost. So even though the owner of the ship lost 800M worth of assets, and 300M of assets were destroyed with no compensation, no actual isk was removed from the game as the isk used to purchase the ship and all its fittings went into the hands of another player. Had the ship been bought from an NPC then its total value would have been an isk sink. But since the isk stayed in the game going into the hands of the seller of the ship, no actual isk left the game when the ship was destroyed, so the actual sink is zero.

The only true isk sinks are when isk is given to an NPC. Sure there are often items brought into the game but the isk does not simply change hands it is removed. For example when you buy a skill book for 500M the isk you spent goes to the NPC and is removed from the game. You can then sell that skill book possibly for more than you paid for it, 550M, but that isk is just changing hands. You are left with a net gain of 50M but the 500M you paid is still gone from the game. The 550M you got was just isk changing hands from another player within the game. The game as a whole had a net loss of 500M isk when that skillbook was purchased from the NPC.

Bounties and mission payouts generate isk from nothing, while activities such as running wormhole sites do not generate isk. You may thing, wait, running wormhole sites makes more isk than missions or ratting. How can it not be a faucet? Well, sleepers in wormhole sites do not pay bounties they drop items, those items, such as nano ribbons, are then sold to other players for isk. No new isk is generated, it is just existing isk changing hands. That is the difference. New isk being brought into the game generated from nothing is a faucet, while isk already in the game changing hands between players is not a faucet no matter how much isk changes hands. How much isk goes in and out of your character wallet makes no difference, it is how much isk goes in and out of the game without coming from or going to another player.


tl:dr Shocked

re-read it, i called my mate a faucet coz he was spending isk like one Roll

Did you really need to write all that? seriously people need to learn to read. instead of skimming posts for buzzwords then wasting there afternoons Roll

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

DarthNefarius
Minmatar Heavy Industries
#54 - 2013-01-17 19:05:36 UTC  |  Edited by: DarthNefarius
OkaskiKali wrote:


If the eve economy needs "rebalancing", and the reason why it is out of sink is becuase of NPC payouts (im interested to know if that includes incursions)


I am willing to bet the Escalation Incursion nerfs cut Incursion ISK by 70-80% per month.
I'm curious if what I'm hearing from Missions&Complexes forum is true & they've seen an appreciable ISK profit cut since the release of Retribution due to the new AI & the TD bugs.
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'
Isabelle Dmitri
Serotonine Developments
#55 - 2013-01-17 19:11:11 UTC
Candy Oshea wrote:
this is what happens when a mechanical engineer argues with ecomonics major's isn't it


No, I'm a mechanical engineer and I understand this **** perfectly.
This is what happens when a ******* MORON debates with people who actually have a basic understanding of the game.
mynnna
State War Academy
Caldari State
#56 - 2013-01-17 20:09:10 UTC
DarthNefarius wrote:
OkaskiKali wrote:


If the eve economy needs "rebalancing", and the reason why it is out of sink is becuase of NPC payouts (im interested to know if that includes incursions)


I am willing to bet the Escalation Incursion nerfs cut Incursion ISK by 70-80% per month.
I'm curious if what I'm hearing from Missions&Complexes forum is true & they've seen an appreciable ISK profit cut since the release of Retribution due to the new AI & the TD bugs.


I wouldn't really try to extrapolate whinging on the forums out into a complete picture of effects on mission income and faucets.

Member of the Goonswarm Economic Warfare Cabal

Alex Grison
Grison Universal
#57 - 2013-01-17 20:12:37 UTC  |  Edited by: Alex Grison
Isabelle Dmitri wrote:
Candy Oshea wrote:
this is what happens when a mechanical engineer argues with ecomonics major's isn't it


No, I'm a mechanical engineer and I understand this **** perfectly.
This is what happens when a ******* MORON debates with people who actually have a basic understanding of the game.


Don't get mad. All of the tear vacuums are being used in C&P right now.

:(

yes

Tebb1288
Firework Industries
#58 - 2013-01-17 20:35:19 UTC
Debra Tao wrote:
OkaskiKali wrote:
Confrontation fuels any economy.

CCP should do more to fuel confrontation... I have said this for years now - give the people something to shoot at that will either..

1. Ruin someones day or
2. cause the owner to defend it.

I would like to see an Incursion type areana but with perhaps CCP running these so called live events.

Or perhaps more tounament based areana.... just something to make people want to spend isk.

I have about 5bil in the bank, anything i earn goes into a PVP ship. I personally hate grinding but find incursions a good and enjoyable pass time. I don't think incursions are the reason for increase in PLEX. Its quite possible due to the effect of moon mining. (dont get confused i am talking about moon mining and not the act of reacting).

Role eve back 5 years at a time when small roaming groups were frequent - thats eve at its best and i think the nano nerf stopped a lot of roaming gangs.

Now i use t1 cruisers and destroyers becuase they are cheap and good fun, and with the act of being blobbed its makes taking a more expensive ship out roaming hard to justify.

Perhaps what we need is a different types of fuel for all types of ships and not just capitals..that is an item managed by CCP and not a player based thing or, certain items in game will contain a VAT payment.

You can make a lot of accounts to real life. people will spend money on new items so we need new items - however this may not be as simple as it seems since adding new items means so many different other paths need to be walked.



I think you and Raven are both wrong about that. Whereas in real life consumption is the fuel of the economy in EVE it is not so good.

If everyone start to pvp more then there will be more circulation of isk so there will be inflation, that's for sure whereas most of the source of income are independant from the player's market so at the end it would be bad for mission runners, plexers and guys doing incursions...

In real life we can see that when a country starts to develop quickly there is a big inflation (see : China) but it is still a good thing for that country as unemployment is reduced and the counrty can "catch up" with the more developped countries, there are no "developped countries" in EVE and no unemployment... The reasoning doesn't apply here.



That being said i love PvP but if we just look at inflation it's debatable to promote a lot more pvp.


I'm not an expert at economics, so please correct me if I am wrong.

The inflation of the price of final products leads to an increase in the price of raw goods used to make the ships, modules, etc being blown up due to more conflict. The increase of price in raw goods leads to more people harvesting those raw goods (miners, PI, etc) creating downward pressure on the price of raw goods. Those raw goods are then turned into more ships, modules, etc, decreasing the price of those final products.

So in the end, an increase in conflict/consumption mainly increases the rate at which isk exchanges hands, but may not necessarily increase the price of goods in the long run as people adjust to the new demand?
Candy Oshea
Techfree Investment Group
#59 - 2013-01-17 22:10:57 UTC
Isabelle Dmitri wrote:
Candy Oshea wrote:
this is what happens when a mechanical engineer argues with ecomonics major's isn't it


No, I'm a mechanical engineer and I understand this **** perfectly.
This is what happens when a ******* MORON debates with people who actually have a basic understanding of the game.


get mad scrub haha love it.

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

Debra Tao
Perkone
Caldari State
#60 - 2013-01-18 00:27:22 UTC
Tebb1288 wrote:


I'm not an expert at economics, so please correct me if I am wrong.

The inflation of the price of final products leads to an increase in the price of raw goods used to make the ships, modules, etc being blown up due to more conflict. The increase of price in raw goods leads to more people harvesting those raw goods (miners, PI, etc) creating downward pressure on the price of raw goods. Those raw goods are then turned into more ships, modules, etc, decreasing the price of those final products.

So in the end, an increase in conflict/consumption mainly increases the rate at which isk exchanges hands, but may not necessarily increase the price of goods in the long run as people adjust to the new demand?



As many economic phenomenons there are different factors some which tend to increase the inflation others that will tend to regulate the inflation. Overall though the theory back up the idea the the velocity of a currency is bad for the inflation : http://en.wikipedia.org/wiki/Inflation#Monetarist_view