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Fan Li
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Posted - 2010.10.14 22:42:00 -
[1]
 Originally by: Ash Donai
Why would it be in CCPs interest to raise PLEX prices? So that fewer people trade their ISK for PLEX, which means fewer PLEX are sold for ISK, which means fewer PLEX are bought for RL cash, which means less RL cash into CCPs coffers?
Did you consider that an increase in price would spike purchases of PLEX with cash and give the company a temporary boost in working capital and/or liquidity?
Certainly more people buy PLEX with cash to sell for ISK when plex is 400m versus 300m...
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Fan Li
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Posted - 2010.10.14 22:45:00 -
[2]
Originally by: Ash Donai
Still, economy of scale obviously applies as most all traders are well aware of. It's fairly easy to make X per month with little effort, however, making X+1 is significantly more difficult even if you put in a lot of effort. This works with 400/600mil and to a lesser degree with 4/6bil, but obviously not with 40/60bil.
I'm not sure you understand what "Economies of Scale" are (or maybe I don't)...economies of scale have to do with costs and would be better used to determine the value of things like....the Accounting or Broker Relations skill...no?
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Fan Li
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Posted - 2010.10.14 23:03:00 -
[3]
Originally by: Akita T
Originally by: Fan Li
Certainly more people buy PLEX with cash to sell for ISK when plex is 400m versus 300m...
Not certainly at all.
I agree and should have made it more clear I was implying a speculative view, hence the ellipsis 
We can make threads all day, at the end of the day, it's ALL speculation 
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Fan Li
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Posted - 2010.10.14 23:18:00 -
[4]
Originally by: Ash Donai
I don't think that in-game skills are relevant to this discussion. You are right in that I bunched the original economies of scale and it's opposite together into my preferred term of "economy of scale". The point is that it takes disproportionally less effort to make 6B than it takes to make 60B because whatever it is you do to make 6B doesn't scale well (or at all for that matter) up to 60B over the same time period.
I don't think they do either, I wasn't introducing them as talking points, I was introducing them as examples of what could reflect "economies of scale" in game.
I also agree on the effort bit, but it's a bit less "effort" and more just the plain fact that there are no more or less suitable investments for return...or that person/player can't achieve higher returns with a higher supply of capital due to their own downfalls...it's the same principle as to why we see responsible mutual/hedge funds close up voluntarily in real life.
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Fan Li
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Posted - 2010.10.15 00:29:00 -
[5]
Originally by: Ash Donai
Originally by: Fan Li
or that person/player can't achieve higher returns with a higher supply of capital due to their own downfalls
The downfall being time. There's only so much time and higher capital would lead to higher returns if the logistics of creating those returns couldn't chew up all the time essentially making higher returns during the same time period impossible.
Or inability to find more successful investment vehicles. This could stem from time, but could also stem from the investors lack of experience, as well as other things.
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