Merchant Archive

Thread: Monopolies Can and Have existed ... a Case study.

SeaRaptor
Thu Aug 12, 2004 5:20 am
#27






khamafeu wrote:


DB size i don't know... in the recent patches they've added 5 loot kits + 9 paintings + assorted stuff... after adding 70+ items to the game how is DB an issue?



Which is exactly why we need to hear WHY these changes are necessary before we can effectively offer ideas , IMHO.




Felton Kel
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Mikhail24
Thu Aug 12, 2004 6:48 am
#28

Slowing commerce down is only another way to broaden the gap between casual & hardcore crafters.



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Wire3k
Thu Aug 12, 2004 7:01 am
#29






Mikhail24 wrote:

Slowing commerce down is only another way to broaden the gap between casual & hardcore crafters.






Sorry Mik - the way to narrow that gap is player skill and education, and perhaps untinking the system so resources aren't the end all and be all of (some) final product.


The only real block would be if a particular craft requires extensive HQ resources - and the gathering of those. Slowing things down only does nothing good for crafter OR consumer.



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Avair
Thu Aug 12, 2004 7:11 am
#30

Ok, rebuttal number 2. One of the key differences in our debate here is that we are defining monopolies as fundamentally different things.



  1. My definition - A single producer who exclusively controls the means of producing or selling a good or service. Giving them the ability to set the price as high as they want.

  2. Your definition - A single producer or group of producers, controlling 60% of the market,who can greatly influence the price of goods in a market. I would argue that this definition is so loose as to be meaningless. If you look at the 60% of the market in any industry, those companies all greatly affect the price.

> The source of wealth is not germain andshould not come into play as an argument for or against "monopoly powers" or "monopoly market share".


Sort of agree. Business require money to make money (Capital). If i gave you a billion dollars tomorrow, with the requiste smarts, you could set up a pretty good business pretty quickly. Business either grow capital via profit from sales or investors. Since SWG doesn't have capital markets (other than impromtu ones via guilds), most businesses grow via sales of goods or money missions. If huge amounts of capital are generated illegally (via counterfiting), that would allow stryker a hugely competitive advantage. But I left it out as an argument because if he did cheat, his success wasn't typical or likely repeatable via legal means.


> Yes ... Stryker had monopoly market share


We are defining monopolies differently, according your defination yes. Mine no.


> This had nothing to do with "unfair government" anything. unfair is an subjective term and is likewise subjective to the eye of the beholder.


To keep a coericive monopoly in place, which in a free market can't exist, the government has to do SOMETHING to stop other competitors. Unfair is subjective, but in SWG all players are subject to the same rules, so no unfair advantage of any degree is possible.


> This person had monopoly market share in more then 1 area ...


Again. Differing definitions, so different conclusions. I'll cite some real sources for my definition, Alan Greenspan/Ayn Rand - Capitialism - The Unknown Ideal. Cite some for your definition please.


> I can show several things that were "bad" due to what he did ... quite a few ... the least of which is drive other weaponsmiths out of business ... on purpose.


All businesses seek to drive their competitors out of business, inwith varying degrees of competitance, as they try to become more successful. Free markets will allows lower the price of goods overtime. It also forces uncompetitve business out of business. We can have a socialist ecomomic simulation gameif you like, where uncompetiant businessman can succeed too by bartering for favors with the governement instead of producing goods efficienctly, but I doubt many folks would want to play it for long. But since SWG is a capitist free market simulation, we should stick to that.


> You contridict yourself. You can't have a "free market" and also not have 'threats' of monopolies.


Dead wrong. Truly Free Markets prevent coercive monopolys through their own rules. Capital allows flows to most profitable oppurtnity and a Coercive monopoly is very profitable, so competitors will show up. Onlyintervention by government (i.e. SWG rules) can prevent new competitors from entering.


> Even in a "free economy" there are laws and regulations about what you can and can not do ... currently I don't see any of those in place. Do you? Where are the anti-trust laws for example? The very foundation for "free market" is "fair market".


I would argue that the foundation of a free market is property rights. Individuals have a right to sell what they make, and to be secure in their property. Anti-Trust laws were created (in the US) to break up government created railroad monopolies, where the US government stole land from individual owners (or gave federal land grants, i.e. stole from taypayer), gave it to private railroad companies, then passed laws to prevent other competitors from legally building railroads. No government unfair advantage, no coercive monopoy, no need for anti-trust laws. Governement was at fault, the 'free market' got the blame. 'Fair market' is anotherterm for protecting uncompetive businesses at the expense of tax payers.


As stated before, no such in game rules allow any player to build such a business. If there were a limited supply of harvesters, factories or vendors, then yes, someone could own all of them and create a monopoly.


> Stick to the study and knock off the book stuff if you want to make ground here.


I find it difficult to argue about economic theory without applying economic theory (which I usually read in a book) to it. The case study you have provided still doesn't meet the 'book theory' on what a monopoly is.


In conclusion, I doubt very much we will change each other's mind about what a monopoly is or isn't. But I hope the readers of this thread will realize that SWG monopolies can't exist, and the 'protections' (vendor caps) SWG is thinking of providing will not help them in the slightest against the hardworking successful business creatures of SWG. It will only hurt them in the form of higher prices, which are the net result of any government protectism.





Avair Darkwater
CEO, Darkwater Robotics, Tarquinas Server
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---
Anti-Trust: Why SWG monopolies are pure fiction.
---
SeaRaptor
Thu Aug 12, 2004 7:17 am
#31

I love this discussion. =)


Am I the only one who wants to see an economic panel at the next FanFest? =D



Felton Kel
Master Weaponsmith, FelKel LTD Weaponsmiths

Old weaponsmiths never die, they buy a planet and retire in luxury.
Now on MMORadio - Where Gamers ROCK!
ArmaniWeapons
Thu Aug 12, 2004 12:16 pm
#32

This is a good thread about what is possible in swg. I don't think the vendor storage was the reason that Stryker was able to dominate his server weapon sales. I would even question if Stryker did this himself.


Did he have friends helping him stock all these 1000's of weapons per hour he sold?


Did he actually load the 50+ factories that would be running non-stop to make said weapons.


Since he dominated the high end krayt market, how did he hand craft so many krayt weapons?


It sounds more like he had a group of friends or partners as I like to call them that helped him do all this work. As the top crafter on my server I don't find resources to be the limiting factor on sales, and have not for a very long time. Its actually the real time that is associated with crafting and restocking. Maybe he had a web of merchants that he could trust to sell his weapons all over the galaxy, but as most people find out that is very unreliable.


Another point that doesnt seem right. The fact that all his resources fell into the stockroomand disintegrated after day 7 is hard to believe. That would mean he had put billions of credits (1000's of stacks)worth of resources on the vendor on the same day. A person that is selling 400mil a day in weapons does not take 7 day breaks or let all his items fall into the stockroom on accident. The more likely explanation here is that he got bored and quit smithing. Then again its possible that everything he owned was lost in 7 days.


Your statement that there is no real cost for storage on vendors is false. Everything in this game costs a successful smiths his most precious commodity, real time.


The statement thatStryker could buy up the majority of the servers resources as they are mined is not likely either. There are litterally 100's of harvesters on every planet at all times. One person buying the majority of the resources from them all is just false. In reality as his demand increased the amount of resourcesproducedwould increase to meet that demand. That ishow supply and demand work. Its not hard for people to do cross server lot trades to increase their mining capabilities into the 10's of millions per week. At this premium price he was paying even 400mil a day in sales would not withstand that type of supply. Something about your statement here is just not adding up. If 100 people mined with all there lots what he wanted then he would be broke each week.


There will always be room for more smiths in the game. In reality unlimited vendor space helps the new smiths as much as the older ones. If you have 1mil of a top resource or 100mil units of it doesnt change the fact that it takes a certain amount of real time to create a weapon. Your reasoning that the unlimited vendor space contributes to a monopoly is just plain wrong. The idea that anyone can create so many weapons and sell them so cheaply that nobody can compete as well as paying premium prices for the majority of a servers produced resources is also not possible.






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HalasterTheBlack
Thu Aug 12, 2004 1:04 pm
#33






only86 wrote:

Hero!

I'm surprised you didn't throw my name into the mix with monopolies!


I am one of the only people on eclipse that has an absolute monopoly on 4 Different items..

45 FR crafting stations


Nobody else took the best resources in the game on that one day crafting changed and made them.. so >

I can charge insane prices for them

mainly 1mil each


Which is Many times over what it costs to make

anyway


Not sure if it has any relevance I didn't really read all the posts due to lack of time

but thought I'd throw it out.. it is a true monopoly








You don't have the market for ALL crafting stations, just the ultra-highest-end ones. Someone can make one that's 99% as good as yours for 5% of the price, roughly.


I don't think that's a monopoly.


It *is* smart business.




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Avair
Thu Aug 12, 2004 1:10 pm
#34





I am one of the only people on eclipse that has an absolute monopoly on 4 Different items.. 45 FR crafting stations


Nobody else took the best resources in the game on that one day crafting changed and made them.. so >

I can charge insane prices for them mainly 1mil each




This isn't truly relevant for the argument, mainly because if I understand correctly, you can't produce more, so you don't control the means of production, which is whata monopoly is. These items are really rare, so hence really valuable. But there are substitute goods which are almost as good, (i.e. +44.143 station or the like). You charging that price don't affect the price of most crafting stations.




Avair Darkwater
CEO, Darkwater Robotics, Tarquinas Server
Droid Showroom - Coronet (407, -5606)
Corporate Headquarters, Edge of Infinity, Dantooine, (-2851, 5283)

---
Anti-Trust: Why SWG monopolies are pure fiction.
---
only86
Fri Aug 13, 2004 12:57 am
#35

Hero!

I'm surprised you didn't throw my name into the mix with monopolies!


I am one of the only people on eclipse that has an absolute monopoly on 4 Different items..

45 FR crafting stations


Nobody else took the best resources in the game on that one day crafting changed and made them.. so >

I can charge insane prices for them

mainly 1mil each


Which is Many times over what it costs to make

anyway


Not sure if it has any relevance I didn't really read all the posts due to lack of time

but thought I'd throw it out.. it is a true monopoly






Enkidu - Mayor of
Junction


Coronet Mall 887 -4684

The only maker of perfect 45 FR Crafting Stations


Aeja
Fri Aug 13, 2004 6:35 am
#36

Only thing I can say about the Micro Soft crap is since they were not allowed to bundle their software with the operating system now Im stuck with FREAKIN WORD PERFECT (or pay for word wich 9 out of 10 people use). Still waiting for coke or pepsito file a lawsuit that says they must place 1/2 of each others products in their 12pks. Get the same idiot judge who ruled in the microsoft suit im sure he'd see the logic.
EnigmaBSc
Fri Aug 13, 2004 7:01 am
#37

<off-topic>

Aeja wrote:
Only thing I can say about the Micro Soft crap is since they were not allowed to bundle their software with the operating system now Im stuck with FREAKIN WORD PERFECT (or pay for word wich 9 out of 10 people use).



Problem solved
</off-topic>

EnigmaBSc
Numen
Fri Aug 13, 2004 8:01 am
#38

As I believe you were a weaponsmith at that time, were you put out of business that you couldn't make any money?


If so, that means for roughtly 2+ months you couldn't make and sell a single weapon. Congrats to you for sticking with no income for so long.


Sorry but your 400+ mill is a little off. I would even have a hard time believing 10% of that, but would have to ask him.


No matter what, he wasn't a monopoly and could never be one. There were multiple weaponsmiths on the server(including yourself if I recall correctly) that were produceing weapons.



Amandil Morier - Tempest - Master Chef
Little-Green-Guy
Fri Aug 13, 2004 10:07 am
#39

that is insane..and this a great "story" but 400+ million per day in credit sales....would require so much factory, resource gathering, not to mention - real life - work involved. No way this is a true "story". But it is entertaining, nonetheless.


However, Oligopolies do exist on every server



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