Bounty Hunter Archive
Thread: BHs w/ Jetpacks: Take Note
hi_i_am_new_here wrote:
Heh.. I can have a full 1550 hold in under 10 mins.
Shaan'ti Hokai (Kauri) 
Ok guys I know a little about economics from studying at university. Your both kinda right but in the same breath wrong. I wont go into drawing pretty little demand and supply graphs but here is the way it works.
To a degree its about demand and supply elasticity, but there are also other factors that shape how much something is worth and the demand for it. First of all nobody needs barc repair kits atm as you can repair them at a garage, demand is short making the need for suppliers short and in theory prices be absolutely nothing.
However once demand increases (INSTANTLY), due to thenew patch on TC,in a very shot space of time supply will be outstripped, demand curve jumps up the supply curve vertically and you get an increase price per quantity supplied.
NOW here is the kicker the price increase will depend on the supply elasticity of the supply curve (pretty sure I’m right here). IF it is very very hard to make barc repair kits (i.e. the resources are difficult to make or get, and or you need to be master droid engineer which nobody is hehe. OR only a certain amount can be made at any one time) then supply curve is inelastic and the price will increase that much more with an increase in demand in order to find equilibrium (the point at which supply and demand cross on a supply/demand graph). HOWEVER if the supply curve is elastic and barc repair kits can be made easily cheaply then supply curve is elastic and there will be a less of a price increase to find a suitable equilibrium.
PS at a request I can draw the graphs to demonstrate if you like lol
Is this the Merchant forum, the Economics forum, or the BH forum?
As long as these repair kits require Asteroid resources, and as long as Asteroid resource supply is low, the prices for these will remain high. If Asteroid resource stocks go up and the price comes down on them, so too will the price on the repair kits.
Human nature dictates that people will get what they can for something, and others will try to take business away from competition by under-cutting....but they won't slit their own throat just to try to steal a sale.
If demand for something is high, the people crafting and selling will raise their prices in an effort to get as much out of the buyer as they can while still selling them. For a real world example, look at US pick-up truck prices. The demand for them jumped in the early 90's and so too did the price. Demand has remained huge, and the price for pick-ups has stayed up. With fuel prices in the States climbing, people are trading their fuel swilling beasts of burden for more economical models. Mark my words, fuel efficient vehicle prices will rise, and SUV and light truck prices will fall....
Supply and Demand isn't as cut and dried as some think, but its dang'd sure is a major player in item pricing.
Laney_1uk wrote:
You do understand that you can't just drop a harvester on an asteroid, walk away and come back tomorrow for the resources
Imagine how much EVERYTHING would cost if artisans could only hand-sample for all their materials.
Demand does not change supply. The only factor that will influence supply is Opportunity Cost - that being, what's that much time worth to the seller? And can more money be made doing something else with that time? Sorry to inform you, but the answer is Yes. Anyone who can mine asteroids could just as easily be doing space missions and making a couple hundred K in the time it takes to mine enough materials for one repair kit (750 each of two materials takes an experienced miner about 30-45 minutes). I could fly to the Kimogila spawn in Endor sector and shoot fish in a barrel for 45 minutes and come home with 200k in loot and credit chips... so the value of that time will never be lower than that, and thus the value of the materials is likewise set.
You're also ignoring the fact that asteroid resources are already required by Shipwrights to make many things - among which are the components used to mine asteroids! It's not hard to find a shipwright willing to pay 60-80 cpu for asteroid resources, so that sets a base price for the finished goods (90-120k plus profit).
“I think you really just don't have much of a concept about what these materials are already used for or what obtaining them entails. You can say "nobody can know" but I'll trust proven principles of economics over your wishful thinking, if it's all the same to you”
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Opportunity cost – is what you give up (the other alternative), by taking any one course of action. So for example if you buy a CD its not the money that is the opportunity cost but the other items or services you could of bought with the money… Although slightly related doesn’t effectively explain price increases or to what degree a price will increase. It does to a certain point explain supply elasticity. For example you have to give up an incredible lot of time, effort and possibly cash to mine, as well as being able to sell the raw material to a shipwrights. Summary is that the price will increase at a higher rate per quantity supplied than would do if the resources are easy to get.
“I think you really just don't have much of a concept about what these materials are already used for or what obtaining them entails. You can say "nobody can know" but I'll trust proven principles of economics over your wishful thinking, if it's all the same to you”
AH must be a new student of economics in his first year of study ? (not a flame but I remember the days myself hehe so just an asumption) … You are dead right, prediction of the economy and its prices is the very study and a vital point behind the THEORY OF ECONOMICS. While nobody can know the exact increase in price, it can be calculated with demand and supply curves to a certain margin of error. But you will need a more than basic knowledge of economics/mathematics to be able to do this and is not an exact science.
I would theorise however that if such repair kits are difficult to create, the price will increase quite a lot for such items and I would be buying my stocks NOW!!!!!
Badda bing badda boom, economics 101
PS I’m not always right and if I’m wrong feel free to contradict me hehe. As you can tell I love this subject lol
Message Edited by Laney_1uk on 08-24-2005 04:15 AM
Was Adam Smith re-incarnated as a SWG Player?
maybe we should use regressive analysis.
. BUT you can crunch the numbers bud. I'm not taking price and supply analysis and plotting best fit lines for no man lol.
Everitt_Cage wrote:
PS: While the 1st bullet says that future repairs kits will be called "vehicle restoration kits" instead of "BARC repair kits", the 2nd bullet says thatexisting BARC repair kits will be converted(or at least usable) as the new kits. So what that means is if you have some extra $$, you might want to get on the bazaar and find the cheapest BARC repair kits on your server and buy a few in case the prices do wind up going up at all. If they dont, hey, u wont be out much that you cant make back in a few BH missions(I'm currently good for 5 jetpack repairs if the need ever arises, all w/out spending too much money IMO, less than 200k each)
With more and more talk about inflated prices, just wanted to QFE for any that didnt see that, since I added it to the OP a little while after the thread had already been started.
Laney_1uk wrote:
SWG is just like any other economy, as long as credit dupes stay away. IT will continue to function like an economy because its services and goods are controlled by the playing community and conforming to human capitalism in its raw sense. By very nature humans are greedy and want the get the most of their money/goods services and thus are the most predictable things in the galaxy (well almost) lol.
Message Edited by vladdvader on 08-25-2005 10:02 AM
TashunkaSapa wrote:
I agree, for the most part. But unlike a real economy, SWG is not a completely closed system. Money flows in from mission terminals, looted credits and quest payments - this money does not represent actual value, in fact it has the same effect as a counterfeiter introducing vast sumsof fake currency into the system. The monetary unit is devalued and rampant inflation ensues.
Don't forget Chinese Credit Farmers and eBay
Yes, there are credit sinks - primarily structure and vehicle maintenance - but that can never fully offset the influx (if it did, all structures and vehicles would soon decay into uselessness as owners could not afford to maintain them).
So the principles of economics still apply, but there is also the hyper-inflation factor to consider. Where we can predict that in a normal working economy, increased demand should lead to increased prices, in the inflated economy of SWG, we can take that further - the increased demand will lead to dramatically increased prices.