Economics: Difference between revisions

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====NPC Production, or mining a better iPod====

The wide availability of meta-0 through meta-4 modules is viewed by many as a major economic problem in EvE, since any of these are equivalent or superior substitutes to T1 manufacture, which produces meta-0 items. Indeed, many meta-4 modules are superior to the T2 variants of the same item. Since lots of people run missions and sell the loot, the inferior manufactured T1 item price plummets. Eventually, it's more profitable to reprocess the item into its component parts -- ~~and~~ missioning is now a substitute for mining.

The wide availability of meta-0 through meta-4 modules is viewed by many as a major economic problem in EvE, since any of these are equivalent or superior substitutes to T1 manufacture, which produces meta-0 items. Indeed, many meta-4 modules are superior to the T2 variants of the same item. Since lots of people run missions and sell the loot, the inferior manufactured T1 item price plummets. Eventually, it's more profitable to reprocess the item into its component parts -- which means missioning is now a substitute for mining.

By analogy, imagine you could manufacture an 8GB iPod, but everyone in your city could dig in a city park and mine up to a 20GB iPod in a few minutes. Manufacturing iPods might become totally impractical -- and people might start mining them and breaking them down to get batteries and touchscreens. Which is what happens in EvE, roughly speaking. '''T1 manufacture actually destroys economic value in a large part of the EvE universe.''' Ship hulls are one of the few exceptions here, since there are vanishingly few ships given out as mission loot.

'''By analogy, imagine you could manufacture an 8GB iPod, but everyone in your city could dig in a city park and mine up to a 20GB iPod in a few minutes. Manufacturing iPods might become totally impractical -- and people might start mining them and breaking them down to get batteries and touchscreens. '''

Which is what happens in EvE, roughly speaking. '''T1 manufacture actually destroys economic value in a large part of the EvE universe.''' Ship hulls are one of the few exceptions here, since there are vanishingly few ships given out as mission loot.

===Inefficient Markets===

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 ====NPC Production, or mining a better iPod====
-The wide availability of meta-0 through meta-4 modules is viewed by many as a major economic problem in EvE, since any of these are equivalent or superior substitutes to T1 manufacture, which produces meta-0 items.  Indeed, many meta-4 modules are superior to the T2 variants of the same item.  Since lots of people run missions and sell the loot, the inferior manufactured T1 item price plummets.  Eventually, it's more profitable to reprocess the item into its component parts -- and missioning is now a substitute for mining.
+The wide availability of meta-0 through meta-4 modules is viewed by many as a major economic problem in EvE, since any of these are equivalent or superior substitutes to T1 manufacture, which produces meta-0 items.  Indeed, many meta-4 modules are superior to the T2 variants of the same item.  Since lots of people run missions and sell the loot, the inferior manufactured T1 item price plummets.  Eventually, it's more profitable to reprocess the item into its component parts -- which means missioning is now a substitute for mining.
-By analogy, imagine you could manufacture an 8GB iPod, but everyone in your city could dig in a city park and mine up to a 20GB iPod in a few minutes.  Manufacturing iPods might become totally impractical -- and people might start mining them and breaking them down to get batteries and touchscreens.  Which is what happens in EvE, roughly speaking.  '''T1 manufacture actually destroys economic value in a large part of the EvE universe.''' Ship hulls are one of the few exceptions here, since there are vanishingly few ships given out as mission loot.
+'''By analogy, imagine you could manufacture an 8GB iPod, but everyone in your city could dig in a city park and mine up to a 20GB iPod in a few minutes.  Manufacturing iPods might become totally impractical -- and people might start mining them and breaking them down to get batteries and touchscreens.  '''
+Which is what happens in EvE, roughly speaking.  '''T1 manufacture actually destroys economic value in a large part of the EvE universe.''' Ship hulls are one of the few exceptions here, since there are vanishingly few ships given out as mission loot.
 ===Inefficient Markets===