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Author	Thread Statistics \| Show CCP posts - 5 post(s)
mechtech	Posted - 2006.08.16 22:15:00 - [61] This is truely a great dev blog, at least 1/10 of dev blogs should be about the economy. interesting stuff.
Daiashi Gallente Supernova Security Systems	Posted - 2006.08.16 22:16:00 - [62] CaosSpinner - I'm on board with you for most of your post except this bit: Originally by: CaosSpinner I could go into detail and use RL examples such as gasoline prices, which if they were set as in the EVE economy would be $20:00 a gallon everywhere in the world instead of ranging from .45 cents in Venezuela to $3:00 in the States to the ungodly price you pay in Europe. If we swap (for example) a small hybrid round for your gasoline then I'm pretty sure the price does not matter as all the ISK transfers are player-player and so no net ISK is added to or removed from the game (other than the purchase of the NPC BPO) I may be wrong though . . . **** On the whole HAC price debate it looks to me like a clasic demand/supply situation Linkage the money is made by the holders of the BPO's as people are willing to pay 'x' for a HAC. The rest of your points explain the same thing in bread n gold but are perfectly valid IMO. /me quietly backs away now for fear of derailing an excellent thread ________________________________________________ The most daring pilot in the Galaxy ~ I FLY NUDE Posting and you
Blinky Palermo Amarr Celestial Horizon Corp.	Posted - 2006.08.16 22:16:00 - [63] I'd love to see a discussion of the globalization of the EVE economy. EVE is interesting in that the markets are artificially divided into distinct regions. Is there any parallel to be drawn to individual nations in a globalized economy? Does inflation vary from region to region? Have individual markets become more homogeneous or distinct? Most interesting would be the difference between the economy in empire space (with high security, missions and NPC market), and in 0.0 space, where the economy is more player oriented, stations are fewer, bounties are higher, and shipping is riskier.
Xtreem Gallente LFC 3rd Front Alliance	Posted - 2006.08.16 22:41:00 - [64] what an excellent blog, something i would really like to know though. How much isk changes hands per say an average 24hrs? How much isk is created and how mucch is sunk.. Im a stat *****
Vasiliyan PAX Interstellar Services Veritas Immortalis	Posted - 2006.08.16 22:47:00 - [65] Very good blog. It looks like the Invention system will increase the availability of tech 2 stuff slightly, and thereby decrease the price, but also distribute the ISK paid for it to a broader section of producers. On the subject of supply and demand, one thing that people complain about the supply of is mineral efficiency research slots. I think they should increase in price signifigantly, auto-adjusting like office prices, which would reduce demand but free up slots. It would also be an ISK sink, acting against inflation; and, by raising the price of entry into the T1 market, would make the T1 which a lot of people want to do more profitable.
Argenton Sayvers	Posted - 2006.08.16 22:56:00 - [66] Since i dont have time to write any essays right now (not that i can back it up with expertise anyway), just a short sidetrack: What is the purpose of a economy in the first place? The entire HAC debate shows one major problem of economical discussion in online games - the main function of an virtual economy - is it fun or "fair" distribution of goods? The designers could fix all supply issues (the amount of aviable oil depends on nature, the amount of aviable veldspar depends on the devs), so there is actually no need for "earth-style" economy at all.: HACs are clearly superior to t1 cruisers in every single way except 1. skill requirements (time investment, but most skills are actually usefull for other ships as well) 2. cost (relevant because of risk of loss) Because the supply is limited (thats obvious), it is the price that has to rise to a level where demand meets supply. The price of a HAC shows its desirability to the EVE community! Proof: Muninn - around 100m, Vagabond, above 220m. The same thing applies to officer modules and deadspace loot. Because you cannot just create more of it, the stuff that is good (or is perceived as good) sells for a lot more then the stuff that is unpopular. For a industry like t1 (or t2 with infinite BPOs), this is not the case - increased popularity will be balanced out by increased production. The price of the typhoon before the fix was probably still higher then(or at least very similar to) the price of a armageddon (back in the damage mod era) or a dominix (in the current NOS / ECM era). This is actually NOT entirely realistic. In Real life, oil fields dont respawn. Some resources are finite, thats why the economy exists in the first place - to govern the distribution. The situation of cov-ops cloaks is actually very simple: the module provides something totally unquie, and there is only one other item in the game that does something similar, a COSMOS cloak. If i had a monopol, i would be selling them for 500m per piece - you dont really have much of a choice - buy it, or stay visible during warp. The price yet again reflects the nature of the item. This is very important - the current t2 economy has a function that the t1 market does not: it prices goods based on their functionality. By doing so, it provides another dimension to ship and item balance - grind. Wether this is desirable - well you decide.
JP Moregain Gallente Moregain Guaranty Trust	Posted - 2006.08.16 22:59:00 - [67] Edited by: JP Moregain on 16/08/2006 23:06:13 Edited by: JP Moregain on 16/08/2006 23:04:18 Originally by: Daiashi Edited by: Daiashi on 16/08/2006 22:32:55 Correction: Demand / supply explains the prices of HAC's and other T2's but does not demonstrate a profit to the BPO ownwers - Actually the supply/demand curves can explain profits in a monopolistic market, which is likely at least some of the T2 market. Note that price increases related to the development of a monopolistic market is an entirely separate issue from the "isk from nowhere"/inflation issue. Interestingly we were having this debate (whether some t2 markets = monopolistic) a few days ago here if you care and here is the link for a nice graph of same. Regards, JP "In JP We Trust, All Others Require Collateral..."
Juwi Kotch Gallente VIRTUAL LIFE VANGUARD	Posted - 2006.08.16 23:13:00 - [68] Originally by: Daiashi Edited by: Daiashi on 16/08/2006 22:39:07 Edited by: Daiashi on 16/08/2006 21:58:50 This blog and discussion has pretty much restored my faith in the EvE community. It is about the best example I have ever seen of a Dev / company explaning how they are looking at their world and a reasoned follow-up from the players. Props to all for keeping this on-topic and developing the discussion rather than the usual <falme/whine>-fest. To add to the discussion, I have tried to consider the various ISK faucets and sinks I've encountered. Faucets - edit faucet = 'ISK from nowhere' (server to player) NPC Bounties / Mission rewards Insurance COSMOS skillbooks and special base items (I think) Tutorials NPC Trading runs for profit Sinks - edit Sink = 'ISK to nowhere' (player to server) Commincation Charges (100ISK x Average chargeable contacts per day x 364 = ????) Skillbooks Market BPO's NPC Station Fees (offices, research and manufacture) Wardecs CONCORD / Customs Fines NPC Trading runs that make a loss (rare events I hope) Account Cancellaton (edit -oops, put this in faucet first ) I'll try to edit more into the lists as I think of them. Please add your own but remember that any interaction that moves ISK player to player is 'neutral' in terms of the faucet / sink idea. EDITS: Removed T2 BPO's from Faucets, thaks Maya - see next page of discussion Added ISK from/to nowhere to remind me and explain to others what a faucet / sink really is Items or skillbooks are generally not faucets, cause they do not create ISK, but only would aid to the redistribution of ISK earned otherwise. Actually the only ISK generating faucets I know of are agent mission rewards, NPC pirate bounties, insurance payouts, and - to a lesser extend - new account creation. No other ISK generation mechanics do exist, afaik. The biggest ISK sink by far is the destruction of ships, modules, and cargo, which once have been paid for with ISK, at least to a certain extend. This would not apply to ships created completely out of reprocessed loot, and fitted with self looted modules and ammunition. Another sink you've forgot is the money you pay to agents when you accept courier missions and consequently loose, when you do not complete the mission. Juwi Kotch
Daiashi Gallente Supernova Security Systems	Posted - 2006.08.16 23:35:00 - [69] Edited by: Daiashi on 16/08/2006 23:42:16 Edited by: Daiashi on 16/08/2006 23:35:30 Thanks Juwi - preliminary updates added Added NPC collateral, but I'm not sold yet on ship destruction. I have it added as a faucet for NPC module drops - as many T1 modules come from NPC drops (ISK from nothing) and a sink for NPC (civilian) purchases. Let me think on this and i'll update more later COSMOS items, yep, they move ISK not create it, I thought I was off-kilter, thanks for the corection NPC skillbooks are stil a sink, even if you buy the at 1M and sell at 3M you are moving ISK but the original 1M purchase is a sink ________________________________________________ The most daring pilot in the Galaxy ~ I FLY NUDE Posting and you
Bagehi Caldari BFG Industries	Posted - 2006.08.16 23:38:00 - [70] As far as economics books and theories, I'm surprised Keynes was mentioned repetitively. Though I am not an ôeconomistö, I have been forced to study it quite a bit as it relates to business quite a bit. I will be clear, I am not an expert. So, with that said, I will restrain myself from questioning what decade the person who suggested KeynesÆ book for reading material was born in; considering KeynesÆ work was mainly in the 1920Æs-1940Æs. There has been a lot of research and thus, reading material on macroeconomics that does a better job of explaining national and global economics and offers better advice on how to normalize them. One of the main things lacking in Eve that would allow economic theories to properly work in the game is savings. This is partially being addressed with the ôstock marketö, but banking institutions need to exist as well (a plug here for BIG and their valiant efforts to create a banking institution in the game). It seems to me that the devs are following FriedmanÆs views on market and inflation controls. However, with the lack of banking institutions (as I said before) I canÆt even imagine the difficulty they are having in controlling inflation and market fluxuation. HereÆs some wikipedia references for modern methods (well the methods used in the U.S. at least): http://en.wikipedia.org/wiki/Monetarism http://en.wikipedia.org/wiki/Supply-side_economics http://en.wikipedia.org/wiki/New_classical_economics IÆm sure Redundancy and the other devs who work on this probably have some information on those schools of economic theory. So, to boil down what little I have to suggest to them: They need to have an adjustable tax rate and interest rate as well as a control on the volume of ISK entering the market at any given time. I realize thatÆs a rather tall order, considering most countries have hundreds if not thousands of people working together on the data and making adjustments to their economies as needed. I assume CCP doesnÆt have that kind of man-power. However, their job should be simplified significantly by already having all the data in one location. Good luck to whoever ends up having to attempt to normalize the market in the game.

Sjoor Caldari S.A.S	Posted - 2006.08.16 23:38:00 - [71] Lately we had the discussion about buying tech II bpo's from auctions. After a few beers and some time we came to a few interesting conclusions: Tech II bpo's that sell for over 10 billion can generally make back the investment within 1 year @ current market price of the item u buy the bpo for. However tech II bpo's that are lower in auctions, like ammo, take around 2-3 years to make enough profit to get even with ur investment. This gave us an interesting conclusion.. if u buy a low priced (below 5 billion) tech II bpo, u are not worried about the isk or producing it for market anymore. Basicly these low priced bpo's are a bad investment cause they are too expensive. 3 years for a mmorpg is a long time, too long i guess. The next step that follows is that due to people buying low priced tech II bpo's the supply will drop, hence the price will go up. After a while it will come to a nice balance where the price of the items will go up so far that the BPO will probably have a ROI (return on investment or something like that) will drop to a year like it is with the pricy tech II BPO's (hacs) More beers, we decided to stay out of the tech II crap, besides spending those billions on just buying tech II stuff. Of course the above has nothing to do with isk sink or supply, but it is still economics in this game I guess. Another interesting thought came up after even more beers. In PvP the primary targets had always a simple order.. ECM first, Gankageddons second and the rest later. Now we tend to go.. HACs first, it hurts your opponent a lot more to loose one tech II fitted HAC than 5 tech I insured scorpions. Intersting game, more interesting to see what will follow on this whole market and reverse engineering thing.. As every1 sees tech II BPO's are flooded on auctions atm. Will Kali make them redundant or not, that's the question.... Time for another beer, Have fun all. PS excuses for my bad grammer and maybe weird words I might use, but english is surely not my first language.
Bagehi Caldari BFG Industries	Posted - 2006.08.16 23:40:00 - [72] If you want to do the faucets/drains thing, the sales taxes are also drains.
Deovina Cataclysm Enterprises	Posted - 2006.08.17 00:10:00 - [73] Originally by: Maya Rkell Yay, I can just point to this blog in the future when people don't believe me about HAC prices not being inflation driven :) Don't judge too quickly Maya. You are right it can not be attributed to inflation only but at the same time we can not be certain that the increase in price is only because of the increasing demand. Part of the price increase definitly is due to rising demand but not necessarily the whole increase. We would need more data. Inflation could still be involved. One interesting bit DigitalCommunist already pointed out is the higher Price Index in early 2005 (about 50-65% which is quite hefty). This inflation can probably be linked to the lvl4 frenzy. But looking at amount of isk/player wallet ratio over time isn't a good indicator alone for inflation because it doesn't take the higher wealth in assests into account. (Cker Heel pointed out velocity aswell). It would be interesting to have a graph for Total Amount of ISK/GDP. It should lean heavily on the ISK side during lvl4 mission, take quite a hit when Capital BPOs were introduced (about Oct 05) and level then. I wonder if the graph really looks somewhat like that though gathering the data for a Gross Galactic Product (GGP) would probably severly hit Redundancy's forum whoring time. :) I guess the EZB would envy you for the data and the tools you have to influence the economy. Anyway great blog keep them comming.
Sol Flare Caldari The White Star Consortium	Posted - 2006.08.17 00:24:00 - [74] Great blog... Enjoyed it and it even refreshed some economics from school The removal of isk from EvE can be done a few ways... but one suggestion would be an EvE Banking system. Several things could be put into play with this idea to help remove more money from EvE. Creating a banking system that would hold a player's isk for a minimal charge will pull a bit of this "thin air" isk out of EvE. To help encourage its use, any isk on the player's person when they are podded or ship destroyed would also be destroyed. Isk should not be dropped into CAN as that would not remove isk as intended. Building a credit line with a bank to allow a corp to take out a loan. This could be tied in with your new contract setup or by using something of equal value as collateral and can be returned once the loan + interest is paid off. This would help some corps expand and provide more goods thus increasing supply and lowering price. Drawback is the price of BPOs and T2 items may see a slight spike for a while since people with no economic idea will think that people have access to huge amounts of money... but interest rates will control the amount corps draw on as that decreases the corp's ROI (Rate of return) and prices will begin to fall. The banking system should automatically withdraw isk on a weekly basis if a loan is taken. Two missed payments would lead to the collateral item being destroyed, thus removing more isk (covering most of the loan withdrawn) and the interest should be a bill that incurs until paid off. To make things interesting you could create factional banks which will only allow debit transactions in systems if the player currently has isk in that faction's bank (multiple minimal charges pulls more isk out). Any purchases in a factional system in which the player does not have isk in the bank will be forced to buy with cash (making traveling more interesting through lower sec space, and more opportunity to remove some more "thin air" isk if ship goes POP during transit). Now this idea probably has some obvious holes punched in it.. but it was just a quick suggestion, as that is how most countries control inflation... through the banking system and interest rates. Hope I sparked some interest (no pun intended LoL) here. Maybe with a bit of brain-storming/player prodding it might work. Great read Redundancy... and especially for someone that had no previous economics.. I would say you do now.
Rumbaar Solitary Forsaken	Posted - 2006.08.17 00:57:00 - [75] At what point will the need for T2 BPO be at such a great imbalance to the number of T2 BPO in play that CCP will act to curb such ridiculous HAC, Hulk, etc prices? Or is the economy always going to cater for the fact EVE will never get over 20,000 ppl able too/wanting too fly these T2 vessels. I don't see any other major MMO limiting the availability for newer players. If I played WoW I could eventually get to the instance Dungeon and get the full 'elite' gear. But in EVE I'll never be able to readily afford a HAC, Hulk or have access to the base BPO/BPC to produce them. Seems a false economy to benefit the '03-04 players. I commend them for getting into the game then and sticking with it, but I shouldn't be that penalized for finding the game now. Looking for custom banners? click above, Feedback section.
DigitalCommunist Evolution Band of Brothers	Posted - 2006.08.17 02:15:00 - [76] Quote: One interesting bit DigitalCommunist already pointed out is the higher Price Index in early 2005 (about 50-65% which is quite hefty). This inflation can probably be linked to the lvl4 frenzy. But looking at amount of isk/player wallet ratio over time isn't a good indicator alone for inflation because it doesn't take the higher wealth in assests into account. (Cker Heel pointed out velocity aswell). I don't quite understand this. Are you saying more people carry a significantly larger portion of their wealth in asset form, or are you implying assets should be included in the calculations? Total Isk / number of players is a pretty good figure I think. The only thing it wouldn't account for is the players that don't play for any other reason than to get rich, and have been "saving" for 3 years. Purchasing Complex Fullerene Shards, contact me ingame.
Plutoinum German Cyberdome Corp Veritas Immortalis	Posted - 2006.08.17 03:16:00 - [77] Edited by: Plutoinum on 17/08/2006 03:23:52 About insurance: Right, insurance pay out would lead to inflation, if the isk sinks weren't tuned to compensate for that. The idea is encourage people to pvp by making it cheaper, but it doesn't lead to inflation in the end, because CCP tweaks the isk sinks and faucets. So in the end, the guy who buys trade goods for his pos or a new tech-1 BPC sponsors indirectly our pvp. If we didn't have insurance, those npc goods would be cheaper, because CCP tries to avoid inflation and adjusts isk sinks/faucets appropriately.
Simeon Houston	Posted - 2006.08.17 04:53:00 - [78] In addition to dynamic sales taxes as previously mentioned, fluctuating the market prices for items as well as other faucets can help in moving the Money Supply one way or the other. As a new player, I got the impression that market prices are supposed to fluctuate according to demand and supply, but a few short months into my Eve career has revealed that prices are pretty much static with some exceptions. To dream for a moment, if an electronic benchmark could be created for inflation for each region, and then all faucets would be modified by any number of means within each region, trading would become more dynamic, lucrative and interesting as players acted to take advantage of regional price differences. Such activity would naturally draw each region back to a mean benchmark.
FireFoxx80 Caldari E X O D U S Imperial Republic Of the North	Posted - 2006.08.17 07:47:00 - [79] mmm graphs. But doesn't the vagabond graph just proev one of two things? - There aren't enough vaga BPOs - If there are, there's a wonderful cartel at work Or is it just me? I am all for demand outstripping supply, but this is getting a bit silly. Note to traders. Expect a similar thing to happen to commandships
Gilgamoth Eldritch Storm Distant Star Alliance	Posted - 2006.08.17 08:24:00 - [80] That was a really interesting read, thank you Redundancy. I'd like to comment on the Insurance issue. As a previous poster has pointed out that the 40% default and 3 week period would have increased the chance of a payout (and hence more ISK in game) but I know you said about wanting to reduce the pain of death. I think this is valid for new characters, not for older, more experiences characters. One way to do this is to reduce the automatic payment level based on number of skill points the character has, for example drop it by say 5% per 1m skill points. 0-1m SP -> 40% 1-2m SP -> 35% 2-3m SP -> 30% ... 7-8m SP -> 5% Over 8m = 0. Another option is either increasing the cost of insurance or reducing the payout value based on the number of claims they've had, kind of like a no claims bonus? This way, people who continously put their ships at risk (and lose them) get less of a reward. This would have an impact on PVPer's, and low/0.0 sec residents, but then you wouldn't expect "I live in a safe village" insurance levels for someone who lives in a warzone. Just my 0.02isk Regards, Gil Eldritch Storm Council Member, Future Falcon EVE Tools - Project Leader.

Zarch AlDain The Blackwater Brigade	Posted - 2006.08.17 09:22:00 - [81] Originally by: Christopher Scott Hello Redundancy. I would enjoy seeing a dev blog that details the economics involved with interceptors costing 7 million isk apeice, exept for the crow, which costs 20 million ISK. Would that be similar to HACs going from 80 million to 200+ million? Please elaborate. B-) Crows are a more popular intercepter, so people are prepared to pay more for them. Look at the hawk which when it was tweaked last patch jumped from 7 mill isk to 25 mill. Zarch AlDain The Blackwater Brigade
Zarch AlDain The Blackwater Brigade	Posted - 2006.08.17 09:27:00 - [82] Give all NPC corps a corporate tax rate of 5% for any character over 3 months old :) Zarch AlDain The Blackwater Brigade
Ralle030583 Gallente The Phoenix cor Phoenix Allianz	Posted - 2006.08.17 09:45:00 - [83] Originally by: Zarch AlDain Give all NPC corps a corporate tax rate of 5% for any character over 3 months old :) /signed! But that alone wont solve the problem ;-) I think one of the problems in eve-economy is that there aren't enough consumption goods. Goods wich were depletet.. like Fuel. Give every ship a tank. Say you need X Fuel to warp X AU and problem is solved. Why you have to pay 4 jumps but not 4 warping. How do the ships generate the energy for that? Fuel 4 ships will cause: -> Transport of Items generates costs !!! (like in RL!) -> Fuel can be made and need things to build for exampleICE harvesting / gas star harvesting with special ships -> new Industry is born / new Buisness -> more Trade beetween players -> more ISK destroyes through Trade Taxes because of more trades -> new ships? gas bargers/tanker? -> new modules? (fuel transfer) -> new POS modules Fuel refining -> POS need more energy -> more pos-fuel consumption -> new Service Fuel refining at NPC Station
Ataraxa Gallente Trolltech Ltd.	Posted - 2006.08.17 09:53:00 - [84] I just wanted to say thank you for the information in this blog. Please feel free to produce more like these. Including graphs, numbers and facts. I am very eager to know more about the EVE economy from folks "in the know" Thanks again!
Drizit Amarr	Posted - 2006.08.17 10:00:00 - [85] I can't say I have ever been a great lover of economics, especially when the English teach you to increase prices to curb demand. I would increase output to meet demand by expanding the business, after all, the whole purpose of having a business is to expand it to make it more profitable. Driving off customers by inflating prices is not the way to run a business. My only worry is that mking any radical changes to the basic structure of the economy in Eve will cause an imbalance that could topple it. Countries that have tried to make radical changes in the past have ended up with economic disasters because the stability is based on the infrastructure. If you take away the foundations of a building, it becomes unstable. The same goes with the economy, start removing existing platform it was built on and it begins to topple. Any changes in the economy in one place will ripple through the world (in this case, the virtual world of Eve). Larger countries can absorb the effects for longer and still have the semblance of stability, smaller countries will feel the changes almost immediately. Eve is a very small world, hardly even the population of a single RL country. Any changes will have almost immediate effect and by the time the change is reversed, the effect could be catastrophic. Since there are no large countries in Eve capable of absorbing the impact, total collapse of the virtual world economy of Eve could occur from one single change. --
rodgerd Gallente Center for Advanced Studies	Posted - 2006.08.17 10:38:00 - [86] Originally by: Daiashi Edited by: Daiashi on 16/08/2006 23:42:16 Edited by: Daiashi on 16/08/2006 23:35:30 Thanks Juwi - preliminary updates added Added NPC collateral, but I'm not sold yet on ship destruction. I'd argue they can be a sink in some circumstances - consider the hi-sec shuttle economy, where one might buy a 9000 ISK shuttle from an NPC (ISK sink), and then have it destroyed. It's unlikely to be insured, so the sink isn't balanced by the tap. The same would be true of any NPC ship where insurance doesn't cover the cost of the ship and insurance.
swiss TEX DRUCKWELLE	Posted - 2006.08.17 10:39:00 - [87] very interesting to read this blog. thanks a lot (yep i am also one of that stat lover). perhaps we need a regulation like federal banks. steering the isk sink and isk growing by tax rates (or much more difficult, by interests). . _________________________________ DRUCKWELLE German Speaking Corporation In Reliability, Honor and Money we trust!
rodgerd Gallente Center for Advanced Studies	Posted - 2006.08.17 10:40:00 - [88] Edited by: rodgerd on 17/08/2006 10:42:01 Edited by: rodgerd on 17/08/2006 10:41:23 Originally by: Ralle030583 Originally by: Zarch AlDain Give all NPC corps a corporate tax rate of 5% for any character over 3 months old :) /signed! But that alone wont solve the problem ;-) The problem? I didn't see a reference in the blog to there being a problem with inflation in Eve. Or is the "problem" that people who play differently to you have any assets at all?
Ralle030583 Gallente The Phoenix cor Phoenix Allianz	Posted - 2006.08.17 10:45:00 - [89] Originally by: rodgerd Edited by: rodgerd on 17/08/2006 10:42:01 Edited by: rodgerd on 17/08/2006 10:41:23 Originally by: Ralle030583 Originally by: Zarch AlDain Give all NPC corps a corporate tax rate of 5% for any character over 3 months old :) /signed! But that alone wont solve the problem ;-) The problem? I didn't see a reference in the blog to there being a problem with inflation in Eve. Or is the "problem" that people who play differently to you have any assets at all? if think that inflation will come one day because more ISK are generated (agent missions, bounty, insurance) than consumed.. and that have to be fixed in my opinion.
Atrox Cruor	Posted - 2006.08.17 10:48:00 - [90] Very nice article, I really enjoyed it. We need to see more of this on the DevBlog. A point about monopolies I'd like to make. It is often incorrectly assumed that a monopolist in EVE has free control over the pricing of the product and thus this would make him raise his price to astronomical levels. While this may seem tempting to him, he surely would not attempt this move. Why not? There are a few factors you have to consider. First of all, he will have to find the most profitable balance between the demand for his product, and the price. This is done by comparing the marginal income and marginal costs Secondly, he must consider the risk of people running of to find substitute goods. Thirdly, he will have to consider stay-out pricing, which basically means his prices should be kept low enough as to discourage any potential competitors. Lastly, an organised group of demand can issue a tremendous amount of pressure on a monopolist. Think of everyone wanting an HAC uniting in some sort of union, boycotting the purchase of HACs altogether. This would devestate the current oligopoly.



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