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Thread: How is the vicky economy modelled? What are the formulas and underlying assumptions?

  1. #141
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    Quote Originally Posted by NoClass View Post
    I'd like to bring up another fundamental aspect of the model that I suspect is intentional, but flawed: how price in V2 actually responds to supply and demand. Since I don't have a background in econ, please let me know if I'm off the mark here.

    As I understand V2, a good's price is determined by the ratio of supply and demand. If the ratio D/S is in a certain range then the price rises and falls at about 1% of base price until it hits a price that corresponds to that range. This leads to situations where the price may start to rise in response to rising demand, because that boosts the D/S ratio, even if demand is much lower than supply.

    It does NOT work the way I understand classical microeconomics says it should, that price rises when there's more demand than supply, and falls when supply exceeds demand.

    I suspect that PI made it this way to prevent goods prices from pinging their floors and ceilings (or to rise infinitely or fall to 0 if there were no limits)the moment supply and demand are out of whack.

    I could easily suggest a better way if my understanding of game economics and real economics is correct.

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  2. #142
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    well, ive been thinking (yeah watch out )

    in order to get a stable economy in v2, we need workers who can actually afford to buy some luxury goods... so how about if PI would/could add the following?

    *factories stopped hiring people as soon as they start to get excess production-not hiring till there where less than 1 unit of excess production or some such?
    *capitalists not upgrading factories that produces excess goods.

    -way i see it now (v1.2), the factories either work full out or they go bust since they overproduce and lower the market value of their good and the profits from which the workers get their pay and their money to buy those luxury goods... well pay'ed workers should be able to afford luxury items
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  3. #143
    First Lieutenant NoClass's Avatar
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    Quote Originally Posted by PB-DK View Post
    well, ive been thinking (yeah watch out )

    in order to get a stable economy in v2, we need workers who can actually afford to buy some luxury goods... so how about if PI would/could add the following?

    *factories stopped hiring people as soon as they start to get excess production-not hiring till there where less than 1 unit of excess production or some such?
    *capitalists not upgrading factories that produces excess goods.

    -way i see it now (v1.2), the factories either work full out or they go bust since they overproduce and lower the market value of their good and the profits from which the workers get their pay and their money to buy those luxury goods... well pay'ed workers should be able to afford luxury items
    KristopherWG had a similar suggestion and there was some discussion on the "Weak Factory Input" thread.

    Anyway, I'm ressurecting this thread to merge that thread and the capi input thread discussions together, because there's still some fundamental questions in each left open.

    One critically important question was whether imported goods imported from the common market were affected by tariffs. Naselus proved pretty conslusively, IMHO, that tariffs have no effect on locally produced and sold goods, but no similar experiment was conducted on the import side (common or WM imports). Nas also didn't claim to check for national subsidies (negative tariffs), so I'm curious if they have the same effects relative to the markets.

    It was also suggested that tariffs actually manipulate the price of goods, rather than just add a government surcharge or bonus when they are bought. I suspect this is just poor word choice in a dev diary, but Nas brings up a good point, saying that wouldn't be the biggest abstraction in the name of simpler calculation. Still, in a quick and dirty experiment I ran, the tooltips of a factory showed no change in input good price with varying tariffs, even with huge profit shifts.





    Of course, all of these fundamental questions could be quickly and easily answered by a few words from a helpful dev. They're pretty important to gameplay, and the manual is (putting it politely) not always reliable.
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  4. #144
    Yes, cash from tariffs and wages is removed separately and 'off the books' so it doesn't show up in the basic calculations.

    I'll upload a copy of the files altered for the test factory experiment outlined in the locked thread so that experimentation can be done. I suspect that, as tariffs only effect WM-purchased goods, subsidies will also; however, it's a fairly effective testing kit for a variety of different effects and can be used for basic confirmation work.
    For every subtle and complicated question, there is a simple and straightforward answer, which is wrong.

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  5. #145
    For every subtle and complicated question, there is a simple and straightforward answer, which is wrong.

    Creator of PDM:PoD for Heart of Darkness: http://forum.paradoxplaza.com/forum/...ownload-thread
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