Suggestion [BANK] Economy changes

[ka1margonar]

I suggest we implement key factors into our Herocraft economy such as an inflation rate for the DHX. For example, each month the bank adds a 1% inflation rate to its purchase price of gold which would in turn raise the price of all other items. I also suggest you get a few members that understand how macroeconomics work and see what they can come up with so make the economy fluctuate during the months.

 

[Sleaker]

I suggest we implement key factors into our Herocraft economy such as an inflation rate for the DHX. For example, each month the bank adds a 1% inflation rate to its purchase price of gold which would in turn raise the price of all other items. I also suggest you get a few members that understand how macroeconomics work and see what they can come up with so make the economy fluctuate during the months.

inflation for the sake of inflation does absolutely nothing for the economy except reduce the value of currency, if currency gains don't increase by 1% then you're effectively making it 1% harder to operate on the server every week, except when a player has the ability to buy/sell goods. So really it only makes it more difficult for newer players, and does absolutely nothing for current/active players.

 

[xexorian]

@ka1margonar
@Sleaker 's train of thought on this is actually quite sound, and similar to my initial thought when I read this suggestion.

 

[ka1margonar]

Then that brings me to my next point. Do you think that the average price on every item is fair?
Gold - 8.5c (players) 9c (DHX)
Diamond - 7c (players) 10c (DHX)
Iron - .5c (players)
Redstone 10 for 1c ( players) 10 for 10c (DHX)
Coal - 7c for 64 (players)
Logs - 4c per 64 (players)
Sand - ?
Glass - ?
Cobble - ?
Mossy cobble - ?
Stone - ?
Stone bricks - ?
Cracked stone bricks - ?
Mossy stone - ?
Obsidian - 15c per 64 (players)
Glowstone - ?
Glow dust - ?
Redstone lamp - ?
Wool
white wool - ?
red wool - ?
blue wool - ?
light blue wool - ?
purple wool - ?
black wool - ?
yellow wool - ?
light grey wool - ?
there is a lot more that I will not add but the prices I highlighted should be altered in some way.
How could we change the price on them and get everyone to follow?

 

[5pyPig]

Then that brings me to my next point. Do you think that the average price on every item is fair?
Gold - 8.5c (players) 9c (DHX)
...a bunch of shit...
there is a lot more that I will not add but the prices I highlighted should be altered in some way.
How could we change the price on them and get everyone to follow?

I am working on a pricing model that involves a base price of gold set by server and comparing the time it takes to mine one gold ingot. I then compare that time to how long it takes to acquire another item and adjust the price accordingly.

For example:
Time to mine 1 gold ore: 12 minutes (i just made it up)
12 minutes = 9c
time to mine diamond: 15 minutes

12 minutes = 9c
-------------------
15 minutes = x

x=11.5c
So in my example 1 Diamond should cost 11.5c

What I am missing is percentages involving how useful the item is and other factors, but at least we will have this base to work off of. When completed it will be given free of charge to the community and hopefully squash anyone selling at rediculous prices. Our ignorance of an item's worth is how people get rich quick.

 

[Faunherer]

Most, if not all, items are priced based on how much DHX pays for it (directly or indirectly). The other items are priced on their usefulness. If we really want higher prices on some items we need to make uses for them.

 

[5pyPig]

Another idea, how about someone who is appointed to oversee DHX prices and try to establish a decent economy? Instead of Kainzo or someone else just posting random prices for stuff, they would use math to come up with a good figure. @ka1margonar please visit this page as an eye opener.

**5pypig gladly volunteers for said position**

I would love to try and fix our economy, even if it is just an unoffical position. Just knowing that the Admins would consider my suggestions would be cool. I better get to working on my maths.

 

[Thunderjolt]

I don't get why everyone is trying to SET prices.

Am I the only one that thinks the the supply/demand system is the best route to go?

Prices will rise and fall based on the demand for the item, no need to make something more expensive that nobody wants, or lower the price of something everyone does.

 

[5pyPig]

@Thunderjolt I am not trying to set prices, I am trying to teach others an approximate value of an item. Too many people don't realize how much time/money they waste.

 

[connormcwood]

I don't get why everyone is trying to SET prices.

Am I the only one that thinks the the supply/demand system is the best route to go?

Prices will rise and fall based on the demand for the item, no need to make something more expensive that nobody wants, or lower the price of something everyone does.

I agree with the suppy and demand system. If people want the item they will buy it for the best price possible. If there isnt enough demand then the item will drop in value but if there is alot and not enough supply then the item will raise. I prefer this method but the annoying thing is with being a merchant and selling items is that everybody undercuts everyone by a few c and so ultimately the item drops tremendously.

 

[ka1margonar]

A free market would indeed be near impossible at this point in time. If we want to change the economy there needs to be a mathematical formula that users can input their material and get a price out of it. like @5pyPig s formula. or something like it that has many factors that make it work such as time/rarity/ and what medium is used to mine it as a general usage. would also need to determine if an efficiency pick would be the medium or a standard.

 

[ka1margonar]

I don't get why everyone is trying to SET prices.

Am I the only one that thinks the the supply/demand system is the best route to go?

Prices will rise and fall based on the demand for the item, no need to make something more expensive that nobody wants, or lower the price of something everyone does.

I agree with the suppy and demand system. If people want the item they will buy it for the best price possible. If there isnt enough demand then the item will drop in value but if there is alot and not enough supply then the item will raise. I prefer this method but the annoying thing is with being a merchant and selling items is that everybody undercuts everyone by a few c and so ultimately the item drops tremendously.

this is why we need a set mathematical formula.

 

[Faunherer]

We don't need a set mathematical formula, that may be too complicated. Though I can see how one could help.

 

[malmenca]

I don't get why everyone is trying to SET prices.

Am I the only one that thinks the the supply/demand system is the best route to go?

Prices will rise and fall based on the demand for the item, no need to make something more expensive that nobody wants, or lower the price of something everyone does.

Nearly everything in Herocraft is acquirable by everyone, save for a select few items. Therefore, there is a noticeable lack of demand for many items. Set prices are seemingly a way to combat the minimal demand.

Also supply isn't there either. Many times, you buy from one person and that is your only choice. (With the exception of items such as redstone etc etc..)

 

[oo00lost00oo]

really set prices? way to start a black market, you think a set price would solve the undercutting?? no it would just drive it underground lol.

The only way to incress demand for things is to make them harder to aquire, take nether matirial, hard to get higer price,
So what happens if only farmers can harvest food?? well you would see the price of food go up,
what about if smiths were the only ppl able to create iron tools and aromor, Demand and prices would, go up,
What about if miners were the only profession able to mine diamonds, Prices would rise with demand,
Merchants would have to negotiate with miners smiths farmers and all other professions on supply and and it would add more value to the profession personally the only thing a merchant can do that others cant is sell stuff while there off line

I'm in NO way saying the above should be done, just saying that would be one way of pushing up prices, Look at the price of enchanted pics high demand price to match.. or iron ore compared to smelted iron,

Set pricing isn't the solution, limiting supply is, limit the supply and you have a more steady market place. I'm sure it would be an impossible thing to balance out between all classes but it could be done i would imagine

 

[c12095]

We've had discussions like this hundreds of times in the past... The herocraft economy will never be able to run efficiently when everyone is able to easily collect almost every item they need. Unless restrictions on what can be made by players are implemented therevwill never be a real economy to work with.

 

[Kainzo]

I agree with the others - in this economy, you can get whatever you want, in little to no time.

There's a reason why Enchanted items are worth a bit more.... potions etc... only set people can make them.

If teleports were offered to everyone, wizards would have no income incentive

 

[Faunherer]

Most professions are not valuable due to the materials they have access to, they are valuable due to their services.

 

[Sleaker]

I don't get why everyone is trying to SET prices.

Am I the only one that thinks the the supply/demand system is the best route to go?

Prices will rise and fall based on the demand for the item, no need to make something more expensive that nobody wants, or lower the price of something everyone does.

automated systems that set prices where the server will buy the item arbitrarily (from unlimited cash reserves) - causes massive problems in balancing. I've played around with these types of systems before I joined up with HC using various forms of DynamicEconomy. It simply doesn't work.

If you want a true supply/demand - There should be no DHX at all, no bankers, no way to trade goods with the server.

 

[Dazureus]

auto-mated systems that set prices where the server will by the item arbitrarily (from unlimited cash reserves) - causes massive problems in balancing. I've played around with these types of systems before I joined up with HC using various forms of DynamicEconomy. It simply doesn't work.

If you want a true supply/demand - There should be no DHX at all, no bankers, no way to trade goods with the server.

I think it may be interesting to reduce the server's impact on the economy next time around. Say, limit DHX's reserves of coin, and have them sell gold at a set price. Then make gold ingots or blocks entry fees for MAs or something.

It's absurdly late for me and mostly anything I type past 2am is easier to poke holes in than.... something that's really easy to poke a hole in. A hot air balloon in a war zone? But I think the general shape of the idea has merit maybe so I am posting it.