RedMage
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Posted - 2007.09.12 16:27:00 -
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Nice report, can't wait till I see my professor's face when I mention i want to study Eve-Online's Synthetic Economy for my next research project.
I am posting to inform some of the readers to a very im****tant concept in economics called "Aggregate"
From Wikipedia
In statistics, aggregate data describes data combined from several measurements.
In economics, aggregate data or data aggregates describes high-level data that is composed of a multitude or combination of other more individual data. For example,
* in macroeconomics data such as the overall price level or overall inflation rate
* in microeconomics data of an entire sector of an economy composed of many firms, or of all households in a city or region.
 Originally by: Akita T
endless supply of tritanium (and other lowends) in Empire space through reprocessing of NPC-sold goods.
...
the compression market replaces a lot of the lowend mineral market.
When talking about the mineral market and each mineral, one just CAN'T ignore the huge number of "compressed minerals" changing hands in form of modules.
The idea of the aggregate would show that a player would not negotiate a price for compressed minerals that varies far from the real market price. A Rational industrialist would not pay for low end minerals at a price that he could go to the market and get himself. (Added cost or discount from the compressor to the buyer could be considered external fees in the form of: Protection fee, Convenience fee, or the 'I'll hook you up because I want to get MORE buisness in the future.'
I would wager that the information provided is reletivly accurate even considering the non-market trades. A second example would be the global stock market. Yes stocks are bought and sold threw brokers on the open exchange (NYSE,NASDQ). However there is a rather large volume of stocks that are traded between private parties behind closed doors and never hit the exchanges. (Brokerage houses, large investment funds, investment banks, mutual funds... the list goes on.) This is not to say that the closed door trading has no association with the markets ans therefor the market prices are false. The market shows the aggregate price of the goods and most rational people will price their purchases either inside or outside of the open market accordingly.
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