Thoughts about the digital economy.

[klankaos]

what klan kaos's quotes said was true, very true indeed.

 

But there was one fact that was overlooked, due to the reaction of the 500 santas gone, players thought they would rise, which they did, but the players didnt think of what klan kaos said, since the 500 santas were out of circulation they didnt really have an effect on the price. But players didnt think of that, instead they just bought santas like crazy and therefore the price rised.

 

 

 

I mean when that point was said, i thought "wow, that was amazingly ingenious, but then i thought about it again and came up with this.

 

( just wanted to express my view on that subject, not flamming or spamming)

 

That's exactly my point. The value of an item in any economy is the perceptions of the buyers, not the reality. Had the player-base as a whole stopped to think about it, they would have realized that the true value of santas hadn't actually increased, for reasons I stated above. However, they didn't - they just went into a frenzy of buying and selling, although the santas truly weren't any rarer or more valuable than before. The price hike was based solely on perception, not truth.

 

(I realize you weren't trying to spam or flame - you did make a good, solid point.)

 

 

 

And even had Duke Freedom only quit, it would have had the same effect - he no longer played, whether forced to or he chose to. It has no effect, unless by quitting he decided to sell them all, in which case the market would likely have flooded.

 

 

 

It was mentioned earlier that it was rumored that he had 500 santas. So, nobody can really tell us this is true. So the value of santas may not have changed at all even in truth, it could simply be rumour that caused the perception to change without the reality changing at all.

[m4tty]

theres too many people and too many items for the rs economy to crash.

[adsee5]

theres too many people and too many items for the rs economy to crash.

 

 

 

it is possible

[Solidus_77]

For a solution there needs to be a problem. In this case, there is no problem.

 

 

 

Obviously we can just assume there has been inflation, however we cannot pinpoint exactly where. (Was it in these past few years, or when RS2 started). For that, we would need to know the price index of each year.

 

 

 

Now, you said taxing players every time they trade? That will never work, people will simply find a different way of trading or just always trade items for items. Don't even bother thinking of fiscal policies in a world where there is no government, just an ultimate force that has power to even reshape the land.

 

 

 

As for this so-called "problem" of inflation, well you're neglecting something very important: The trade-off between inflation and unemployment. I'm not going to go into detail, but basically if there is an increase in inflation (demand lead inflation, which it is in this case) then there is also a decrease in unemployment. This is because people such as alchers are often source of the inflation, however they have created several vital jobs that skillers rely upon. Therefore I don't see why this inflation is a problem.

 

 

 

Finally, people have got to understand that a controlled rate of inflation is really not a problem. What is a problem is hyperinflation, but we arn't even close to that.

[Master_Smither]

I remember when Duke Freedom got banned and since it was rumored he had 500 Santas the prices went up 5M in a day Shocked

 

 

 

 

Theoretically the price shouldn't rise, since all those santas were just sitting in the bank and out of circulation.

 

Correct, but it would probably rise due to the reaction of the population to the banning :-k .

 

 

 

Yes everyoen freaked and thought it would meen way less santas and bought like crazy.

 

 

 

Also the prices rise due the amount in ciruclation. Say there is 1000 santas and 100 are in circulation then the price is based on the 100 on the market.

[Solidus_77]

theres too many people and too many items for the rs economy to crash.

 

 

 

it is possible

 

 

 

That's your claim, which you fail to support for. That's incredibly unconvincing.

[Jacks0n]

Ok, the RuneScape Economy works like this:

 

 

 

The higher the prices are, the harder they are to get.

 

 

 

But, the easier money is to get, the higher the prices rise because people have the money to pay for the items when their price is high, because now days it is easier to get money. Get it?

 

 

 

Oh, and about having a tax on RuneScape people with over 50k, what about interest on P-Hat stakers. :shock: :lol:

[Solidus_77]

Ok, the RuneScape Economy works like this:

 

 

 

The higher the prices are, the harder they are to get.

 

 

 

But, the easier money is to get, the higher the prices rise because people have the money to pay for the items when their price is high, because now days it is easier to get money. Get it?

 

 

 

Oh, and about having a tax on RuneScape people with over 50k, what about interest on P-Hat stakers. :shock: :lol:

 

 

 

So what you're saying is that the price of items increases at an increasing rate because money is easy to get? That's pretty inaccurate since there are plenty of prices that have remained the same for long periods of time. Also, getting money doesn't get easier on a daily rate, in fact new methods are only invented every so often. Furthermore, there are goods that we buy less of when our income increases.

 

 

 

Your analysis is way too vague. Specify what you are referring to and try supporting your arguments.

[ChickenLover]

All those things are reasons too, but everyone knows the real reason...

 

 

 

MACROERS!

 

 

 

Yup, thoses bald little men are are ruing RuneScape, hopefully not permanently...

[TrampInDenial]

All those things are reasons too, but everyone knows the real reason...

 

 

 

MACROERS!

 

 

 

Yup, thoses bald little men are are ruing RuneScape, hopefully not permanently...

 

 

 

The majority of resources in Runescape come from macroers and thst is the reason inflation is not a problem.

[ChickenLover]

You taking me on, trampy? Ill WHOOP you!