Economics: Difference between revisions

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====God made more rocks; or, why the price of tritanium crashed====

The economics of manufacture can also be complicated by game decisions. CCP mounted a major campaign against macro miners in the winter of 2009. This would ordinarily raise mineral prices, as less is being mined. They tried to compensate by creating more veldspar rocks per belt in highsec systems, and overdid it. The price of tritanium (refined from veldspar) crashed from around ~~4ISK~~ per unit to 2.4.

The economics of manufacture can also be complicated by game decisions. CCP mounted a major campaign against macro miners in the winter of 2009. This would ordinarily raise mineral prices, as less is being mined. They tried to compensate by creating more veldspar rocks per belt in highsec systems, and overdid it. The price of tritanium (refined from veldspar) crashed from around 4.1ISK per unit to 2.4. Now, this demonstrates that the market will respond properly to availability -- but since developer decisions drove the price change, it also demonstrates the vulnerability of the system to external forces.

====Market Manipulation -- If you can't find the sucker at the poker table...====

Eve's markets are fragmented and small (with the possible exception of Jita). This means that there can be considerable spread between buy and sell orders, and that a small number of orders may move the market in a big way. Even in Jita, it's not uncommon to see that prices of certain high-value items move over time in a wave-like manner. What's happening is that someone is driving the market -- buying out low-priced items and reselling the items at a higher price. Eventually, they let the price drift back to lower levels, then start buying again. End users of the item, who may only buy once, won't want to wait, or won't notice the pattern.

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 ====God made more rocks; or, why the price of tritanium crashed====
-The economics of manufacture can also be complicated by game decisions.  CCP mounted a major campaign against macro miners in the winter of 2009.  This would ordinarily raise mineral prices, as less is being mined.  They tried to compensate by creating more veldspar rocks per belt in highsec systems, and overdid it.  The price of tritanium (refined from veldspar) crashed from around 4ISK per unit to 2.4.
+The economics of manufacture can also be complicated by game decisions.  CCP mounted a major campaign against macro miners in the winter of 2009.  This would ordinarily raise mineral prices, as less is being mined.  They tried to compensate by creating more veldspar rocks per belt in highsec systems, and overdid it.  The price of tritanium (refined from veldspar) crashed from around 4.1ISK per unit to 2.4.  Now, this demonstrates that the market will respond properly to availability -- but since developer decisions drove the price change, it also demonstrates the vulnerability of the system to external forces.
 ====Market Manipulation -- If you can't find the sucker at the poker table...====
 Eve's markets are fragmented and small (with the possible exception of Jita).  This means that there can be considerable spread between buy and sell orders, and that a small number of orders may move the market in a big way.  Even in Jita, it's not uncommon to see that prices of certain high-value items move over time in a wave-like manner.  What's happening is that someone is driving the market -- buying out low-priced items and reselling the items at a higher price.  Eventually, they let the price drift back to lower levels, then start buying again.  End users of the item, who may only buy once, won't want to wait, or won't notice the pattern.