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Florestan Bronstein
24th Imperial Crusade
Posted - 2011.03.25 19:32:00 - [1]
 

Edited by: Florestan Bronstein on 25/03/2011 20:27:12

EyjoG: CCP "may or may not" intervene on the PLEX market to guarantee its stability (without disclosed targets)


What is he trying to achieve?

Being an economist EyjoG doesn't like direct intervention in markets. The purpose of this announcement is to help the market fix itself without "real" CCP intervention.

How? He is trying to create expectations that CCP is going to react to massive shifts on the PLEX market.

If people look at the market graph and expect CCP to intervene, they will engage in market speculation that in itself will (hopefully) make the intervention unnecessary.

When people see a massive & sudden drop in PLEX prices, they will expect CCP to rise the PLEX price via market intervention soonish and thus go bullish on PLEX - stabilizing the market.

Part of the beauty of EVE's broker system is that even ex-post it will be very hard to say whether CCP did in fact intervene or not (especially if they were to use credibly looking alts).

This allows CCP to get away with a lot of inaction without facing the dilemma of RL central banks that not following through with their own announcements will erode their credibility (and reduce the impact of announcements on market particpant's expectations).

He is using extremely fuzzy speech to (a) create a wide-range of situations in which the market might expect CCP interference and heal itself through this expectation and (b) don't give you any situations in which his credibility can be definitely eroded.


Open Questions:

Will CCP have to do at least one publicly observable intervention on the PLEX market so we believe EyjoG to be serious about this or is the mere announcement that he "might or might not" interfere enough to make us believe he would have the ******* to actively stabilize the market?

Will this erode confidence in the PLEX as a store of value (as CCP has demonstrated its willingness to tinker with it)? ... or rather strengthen confidence in the PLEX as a store of value (as we can expect the PLEX price to be more stable in the future)?


What I would like to see:

CCP limiting itself to real open-market operations on PLEXes and excluding the possibility to create PLEX from thin air (or destroy them for that matter).
Ideally CCP would limit itself in the rate of ISK its central bank is allowed to create for PLEX purchases and announce that they already have bought a nice stock of PLEX off the market to operate with during the past weeks/months.
However, there would be a direct conflict between players keeping their faith in the value of PLEX and CCP not disclosing the limits of its capability to stabilize the PLEX market, so I don't expect such a policy to happen.

Sebastian Belaqua
Posted - 2011.03.25 19:35:00 - [2]
 

Meaning, they will intervene. Just a matter of time til it something causes it to be "unstable", from CCPs POV

Adrian Idaho
Posted - 2011.03.25 19:58:00 - [3]
 

So basically he manipulated the markets from outside of the game? Wink

Also interesting: his statement during the Q&A that more PLEX are being created than used. Wouldn't this mean that PLEX prices should fall in the intermediate future? Maybe that statement of his alone was enough of a manipulation to stabilize the prices around a lower value?

Akita T
Caldari Navy Volunteer Task Force
Posted - 2011.03.25 20:02:00 - [4]
 

Originally by: Adrian Idaho
Also interesting: his statement during the Q&A that more PLEX are being created than used.

That's not news. That's almost common knowledge. And old one at that. Linkage

Malcorian Vandsteidt
Posted - 2011.03.25 20:04:00 - [5]
 

Considering the original Value of a PLex when integrated into the market a few years ago was 200 million - 280 million ISK, and only in the last year has it gone up to 360 Mil / 380 Mil. I would say there is some kind of artifical involvement.

Not necessarily CCP but it's quit easy for the trillionair ISKers (and her are a lot of them now days) to buy 2500 plexes easily off the market and reprice then 10 mil higher per buy out.

The intention of the Plex was so players who could not afford the subscription could still play while players who could afford more could make ISK instead of buying it from RMTers. (RMT Battle).

The plex price is now so high that it is nigh impossible for your average Eve player to afford one. In fact most of the orders seem to stem from the Billionairs and trillionairs attempting to battle each other for highest price.

Personally I think restabilization is necessary, especially since CCP can easily loose subscriptions should the Plex price range to high. Which mean less money for them.

Just my own personal thoughts.

Cyaxares II
Posted - 2011.03.25 20:06:00 - [6]
 

Originally by: Malcorian Vandsteidt
The intention of the Plex was so players who could not afford the subscription could still play while players who could afford more could make ISK instead of buying it from RMTers. (RMT Battle).

the intention of PLEX was to take a massive interest-free loan from the EVE playerbase.

Cetus Perle Rote
Posted - 2011.03.25 20:09:00 - [7]
 

Originally by: Malcorian Vandsteidt
Considering the original Value of a PLex when integrated into the market a few years ago was 200 million - 280 million ISK, and only in the last year has it gone up to 360 Mil / 380 Mil. I would say there is some kind of artifical involvement.

Not necessarily CCP but it's quit easy for the trillionair ISKers (and her are a lot of them now days) to buy 2500 plexes easily off the market and reprice then 10 mil higher per buy out.

The intention of the Plex was so players who could not afford the subscription could still play while players who could afford more could make ISK instead of buying it from RMTers. (RMT Battle).

The plex price is now so high that it is nigh impossible for your average Eve player to afford one. In fact most of the orders seem to stem from the Billionairs and trillionairs attempting to battle each other for highest price.

Personally I think restabilization is necessary, especially since CCP can easily loose subscriptions should the Plex price range to high. Which mean less money for them.

Just my own personal thoughts.


I would disagree with this. Although I am a relatively new trader here, I have researched a bit and what seems to make Eve stand out is the fact that players can control the market if they choose to do so. If CCP did intervene it could cause a domino effect that may not be able to be accurately predicted. If the price is lowered people may also stop buying GTC's and converting them for in game money as their PLEX no longer holds the purchasing power that it once did.

Also from what it seems if anything it is easier to buy PLEX now than what it once was, correct me if I am wrong but is it not easier to make money now than what was once possible? Just looking at general trends it seems everything has been inflating over time, not just PLEX itself.

SencneS
Rebellion Against Big Irreversible Dinks
Posted - 2011.03.25 20:15:00 - [8]
 

It's in CCP's best interest to keep PLEX price low, if they are low, more have to be purchased when you want some quick ISK. However, to the average user, they want the best value they can. The "consumer" of the PLEX likes low prices because they don't have to spent much.

The counter argument is CCP would like a HIGH PLEX price because it directly competes with ISK Sellers. The higher the PLEX, the cheaper the ISK becomes, via legitimate means. However, high priced PLEX mean they start to become unobtainable for the consumer, so EVE loses players which are subscriptions.

It wouldn't surprise me to hear EyjoG dropped that line in an attempt to make people sell PLEX cheaper.

/Tinhat time :)

EVE is about to undergo a major patch, adding a whole new game basically to the game. Having cheaper PLEX prices means people start activating their alts, players return because PLEX price is obtainable, and with a new monumental patch coming out, the more players in game, the more the word spreads to previous players. The more re-newels at the time of patch. The more subscriptions in game, the bigger CCP can say to it's "investors" Hey look at successful this release was!

I know it's pretty big tinhat but if I heard it from the mouth of CCP, it wouldn't shock me to know they manipulated the price of PLEX to accelerated renewals/player base.


Cetus Perle Rote
Posted - 2011.03.25 20:20:00 - [9]
 

Edited by: Cetus Perle Rote on 25/03/2011 20:21:27
Originally by: SencneS
It's in CCP's best interest to keep PLEX price low, if they are low, more have to be purchased when you want some quick ISK. However, to the average user, they want the best value they can. The "consumer" of the PLEX likes low prices because they don't have to spent much.

The counter argument is CCP would like a HIGH PLEX price because it directly competes with ISK Sellers. The higher the PLEX, the cheaper the ISK becomes, via legitimate means. However, high priced PLEX mean they start to become unobtainable for the consumer, so EVE loses players which are subscriptions.

It wouldn't surprise me to hear EyjoG dropped that line in an attempt to make people sell PLEX cheaper.

/Tinhat time :)

EVE is about to undergo a major patch, adding a whole new game basically to the game. Having cheaper PLEX prices means people start activating their alts, players return because PLEX price is obtainable, and with a new monumental patch coming out, the more players in game, the more the word spreads to previous players. The more re-newels at the time of patch. The more subscriptions in game, the bigger CCP can say to it's "investors" Hey look at successful this release was!

I know it's pretty big tinhat but if I heard it from the mouth of CCP, it wouldn't shock me to know they manipulated the price of PLEX to accelerated renewals/player base.




Actually CCP gains nothing from subscriptions activated via PLEX, once that GTC is bought they made their money already. They have no reason to keep the price low other than to stimulate demand via your 'Tinhat' idea above, but by stimulating demand price would go up and balance out again as it is now. The only way they could control this is to put a cap on PLEX. I honestly don't see how they will be able to do this and still have average players being able to sell them effectively at a moments notice. As stated before the amount created outweighs the amount used, so if there was a price cap, the volume of PLEX would drop dramatically.

To be quite honest I believe CCP should keep the price of PLEX high as it would create more GTC sales, which equates to more money for them.

Vaerah Vahrokha
Minmatar
Vahrokh Consulting
Posted - 2011.03.25 21:03:00 - [10]
 

Quote:

CCP limiting itself to real open-market operations on PLEXes and excluding the possibility to create PLEX from thin air (or destroy them for that matter).



Direct intervention on PLEXes is not needed at all and would really ruin the feeling of "pure market" EvE permeates.


What CCP could do is muuuuuuuuuuuch more evil.

Dr. EyjoG could decide to play


The way to do it is to become market maker like FOREX MMs are. In that case he has insider / early information that is of so higher quality than ours than he could crush the players like little fleas.

All of this without ever using a single CCP "godlike power tool" to make PLEXes vanish or appear out of nowhere.



Quote:

the intention of PLEX was to take a massive interest-free loan from the EVE playerbase



Indeed, PLEXes are a real "futures" equity. People pay today for future consigment of game time.

But not just that.

Through the PLEX for <xyz> and PLEX-transactions (i.e. one to buy restricted dressing and so on) taxable RL earnings become tax free and CCP keeps the difference!

Akita T
Caldari Navy Volunteer Task Force
Posted - 2011.03.25 21:14:00 - [11]
 

Originally by: Vaerah Vahrokha
But not just that. Through the PLEX for <xyz> and PLEX-transactions (i.e. one to buy restricted dressing and so on) taxable RL earnings become tax free and CCP keeps the difference!

You had me up to that point, but now I'm sitting here scratching my head going "huh?"
From CCP's perspective, they already paid their taxes on it through the original purchase that created the PLEX (or the GTC used to create PLEX).
From a player's perspective (one that buys PLEX with ISK, that is), to argue that RL money saved by purchasing this way could somehow be equated to money earned in RL the player does not pay taxes for... well, I guess you might be able to. Still, that's quite a stretch you're trying to pull there.
Either way, even if we accept that viewpoint, it's very important to mention that the conversion is hardly 1:1. Or, in other words, that not all people that purchase something with PLEX that they purchased with ISK would have ever bothered to spend RL cash to buy that same thing.

Caldariftw123
Posted - 2011.03.25 21:17:00 - [12]
 

I honestly don't see how they can intervene and not **** the whole game up. They gonna buy plexes to raise the price? By creating isk out of thin air? That's a GREAT idea, considering their worry about inflation .. Not. Or perhaps they'll just slam some plex into the market out of thin air, that's a nice idea - free game time, and it costs out of their RL wallet and doesn't alter our game as such .. but the actual implementation of it? A 1 day dump to buy orders wont do anything, they'd have to participate in the market for an extended period of time to keep plex prices low. There's really very little they can do.

Syds Sinclair
Posted - 2011.03.25 21:51:00 - [13]
 

..Here is my hierarchy of outcomes/motivations for a yay or nay vote on CCP involvement of the PLEX prices:

PRO intervene to lower the PLEX price

~ Keep more subscribers ~ good for obvious reasons.
~ More $$ (or whatever those crazy Icelanders use as ISK) into CCP's pockets ~again obvious reasons

CON intervene

~ Free Market baby


It would be optimal if they could intervene and manipulate by using accounts that don't look like they are what they infect are, to keep the speculation game out of it.


Diomedes Calypso
Aetolian Armada
Posted - 2011.03.25 22:09:00 - [14]
 

My take on this is that there is a "right" price range.

There are big problems with the price falling too low ...

With a low isk price in the 150million range the $ an hour equivalent starts looking good to more average players. Before all of you start going on about the comparison to your Rl income rate, start considering your after tax rate, the relatively lower rate people would be happy to take for shooting at red boxes while watching tv istead of spending more time selling shoes in the mall or whatever

... its not your trade off but the trade off of the incremental provider that matters and plenty of people playing have jobs they don't particlualry want to spend more time doing and some of them like ratting or trading etc.

Also the purchasers of ISK with real $ are important in more than just the $ for that purchase.

If that type of player cannot realize enough isk for their budge of $15 extra bucks a month to buy ships to keep up with their friends with more time to fleet with..those players will leave the game and buy neither their subscription nor the extra gtc to buy isk legally..

Those players are the most vital to keep happy...without them we're lost...

I"d say the risk on the high side is much less to them. The first accoutnsto close would be the 3rd and 4rth accounts which I don't think are game breaking issues. on a play or not basis for most of those that have them.

Raiku Onni
Posted - 2011.03.25 22:11:00 - [15]
 

Edited by: Raiku Onni on 25/03/2011 22:23:52
You are applying way too much though to this. EyjoG didn't notice moon minerals appearing out of thin air for months (years?) yet you seem to think he's stabilizing the market with one extremely carefully crafted statement.

EyjoG couldn't distinguish his buttocks from his elbow.

Edit: Spelling shocker!

Rattus Norwegius
Posted - 2011.03.25 22:15:00 - [16]
 

I think you are on the wrong track a bit. The good doctor has stated numerous times that he do not believe in a "right" price for any item, both before and during this presentation. He repeated it just before this announcement. There is also a big, whooping hint in the terms used, "EVE central bank".


Real life (or understanding the economist)
One of the primary functions of a central bank, besides controlling inflation from domestic sources, is to protect the currency from outside manipulations. This is naturally much more important for small economies than big, but Iceland is a small economy, and one that have had problems with manipulation runs in the past. Protecting against such manipulations was one of the (initial) motivations for building a disproportionally large banking industry.

In game (or the special role of PLEX)
There is still one unique thing about PLEX. It is the only major item that can be produced instantaneously in arbitrary quantities*.

As the PLEX proportion of the economy is getting very significant, a (in RL) very rich player, say an aluminum magnate, might create oodles of PLEX and push the price down to 10 isk/PLEX. Why anyone would want to do that is not entirely clear, but a): that has never stopped an EVE player from doing anything, and b): the effects on the entirety of the EVE economy would be dramatic.

The opposite scenario might also happen, of course.

My reading of the announcement is that CCP will consider intervening if the currency (isk) is under threat from such manipulation attempts. The price of PLEX is therefor not the primary interest, but the effect (inflation/deflation) such a manipulation might create.




*Yeah, all trade goods too. But they have unlimited sinks as well, and more importantly are price controlled.

Diomedes Calypso
Aetolian Armada
Posted - 2011.03.25 22:15:00 - [17]
 

If they were to spike too high, the short term "spike" could push a sudden cancelation of accounts by long term players that do find the second and third accounts vital to their game enjoyment... if that drove out great fcs and alliance leaders suddenly.. that would be a problem wit the over all texture of the game..

... that player created environment.. is vital to the games attraction.

A short term supply spike by some sort of implementtion that the market didn't have time to correct for by players changing thier behaviour could have its impact eased by fed (er ccp) intervention

(at some point developers wouldn't want players to be able to buy too much isk per $ creating an inflation but as there is a closed system with money being mostly drained from one player to go to another, its unlikely that a sustained problem to game balance would persist this way.)

Amrumm
Rhetorical Devices
Posted - 2011.03.25 22:24:00 - [18]
 

I doubt CCP is seeing PLEX prices as too high. They have to be a decent value proposition vs. RMT. If currently more PLEX are being created than consumed, a prolonged anti-bot effort by CCP may well reduce PLEX demand further and cause a collapse in price.

SencneS
Rebellion Against Big Irreversible Dinks
Posted - 2011.03.25 22:26:00 - [19]
 

Originally by: Cetus Perle Rote
Actually CCP gains nothing from subscriptions activated via PLEX, once that GTC is bought they made their money already.


This forum has gone down this road before, the fact is we don't know how CCP accounts for PLEXES. If they look at them like gift cards in which they need to keep them on the books until they are consumed, a PLEX in game is a liability.

There is a lot of theories about how CCP looks at PLEXES, I believe they view them as some sort of "Bad" mark on their books. That's why they have these "PLEX FOR < insert natural disaster here>" drives and "Come to Fan Fest with PLEXES!"

It's not unreasonable to believe the amount of PLEXes in game and used per month adjusts the books. So a massive decrease in PLEXes makes their books look better, because they've removed liability. Like I said, it all depends on how CCP looks/records PLEXES. I tend to lean toward CCP keeping Financial standard bookkeep practices in which they would have to record each unused PLEX in game as a liability. But that's just me and few others Laughing

The other theory that once they have the cash they record it as profit and don't care about the sheer amount of PLEXES in game is acceptable as well, but I personally don't like it.

Adrian Idaho
Posted - 2011.03.25 22:55:00 - [20]
 

Originally by: Akita T
Originally by: Adrian Idaho
Also interesting: his statement during the Q&A that more PLEX are being created than used.

That's not news. That's almost common knowledge. And old one at that. Linkage


Well, that data is rather old... Is there anything newer, a blog or QEN that covers 2010 regarding PLEXes?

Diomedes Calypso
Aetolian Armada
Posted - 2011.03.25 23:50:00 - [21]
 

Originally by: Rattus Norwegius
I think you are on the wrong track a bit. The good doctor has stated numerous times that he do not believe in a "right" price for any item, both before and during this presentation. He repeated it just before this announcement. There is also a big, whooping hint in the terms used, "EVE central bank".


Real life (or understanding the economist)
One of the primary functions of a central bank, besides controlling inflation from domestic sources, is to protect the currency from outside manipulations. This is naturally much more important for small economies than big, but Iceland is a small economy, and one that have had problems with manipulation runs in the past. Protecting against such manipulations was one of the (initial) motivations for building a disproportionally large banking industry.

In game (or the special role of PLEX)
There is still one unique thing about PLEX. It is the only major item that can be produced instantaneously in arbitrary quantities*.

As the PLEX proportion of the economy is getting very significant, a (in RL) very rich player, say an aluminum magnate, might create oodles of PLEX and push the price down to 10 isk/PLEX. Why anyone would want to do that is not entirely clear, but a): that has never stopped an EVE player from doing anything, and b): the effects on the entirety of the EVE economy would be dramatic.

The opposite scenario might also happen, of course.

My reading of the announcement is that CCP will consider intervening if the currency (isk) is under threat from such manipulation attempts. The price of PLEX is therefor not the primary interest, but the effect (inflation/deflation) such a manipulation might create.




*Yeah, all trade goods too. But they have unlimited sinks as well, and more importantly are price controlled.


Generally Agreeing and adddina bit more,

Plex plays a different role then the relative cost of a a Drake to large trimark armor pump. Any concept of "right" price with plex has a lot to do with extranalities beyond the internal virtual world econonomy. (and I listed some above as did you and there are more)

Because it rerpresents by far the easiest and the only legal way to translate real $ to isk and because it influneces the number of active acounts which has at least some corelation to number of humane players (i'd think at somethng far less than 1 to 1 but still a positive corelation even if as extreme as for every 10 plexes activated only one additional person is retained((and its not nearly there)) even if a free floating flex price created the healthiest in game economy, the goal of CCP as a company is to generate the most real money long temr which will only come from attracting and retaining players willing to pay real $ to them for game play privaleges.

While a healthy game econonomy is a valuable game asset, the in game economy can be deemed healthy in many different incarnations. Without the Fun of PVP you'd lose the majority of players for even the non pvp players wouldn't have a very dynamic trading or industrial market if they were all net producers...

The flows of isk an the distribution is quite important to the pleasure of players... and what is and isn't good is subjective but even if precise it can't be left to the whims of how untouched algorithms would play out.

Alice Celadon
Sniggerdly
Pandemic Legion
Posted - 2011.03.26 00:05:00 - [22]
 

Just wanted to drop by and say

I TOLD YOU SO!

(those who have been around these boards for long enough know what I mean).

Now for my new prediction that can be blithely ignored. You know all the CCP talk about how CQ and Incarna are going to "increase immersion"? CCP has big investors banking on the idea that EVE as a whole will grow very rapidly if it gets the same *avatar projection/connection* that has made WOW so wildly successful.

When Incarna tanks hard, owing to an abysmal lack of gameplay content and an oversupply of silly fluff, CCP is going to react strongly by coupling existing EVE Markets to avatar-based gameplay.

In other words, look for CCP to make it logistically impossible to ignore the new avatar environments by pressuring the only place in EVE that responds to CCP pressure -- the markets. Do not be surprised when you have to physcially walk your character past clothing stores and gambling dens in order to reprocess your meta2 mods.

Voogru
Gallente
Massive Damage
We Are John Galt
Posted - 2011.03.26 00:32:00 - [23]
 

CCP should learn from real life, the dangers of trying to manipulate a free market.

Bad things happen.

Rakshasa Taisab
Caldari
Sane Industries Inc.
Posted - 2011.03.26 01:14:00 - [24]
 

They're already intervening in the PLEX market... Just look at the PLEX-for-aid campaigns.

Adunh Slavy
Ammatar Trade Syndicate
Posted - 2011.03.26 01:53:00 - [25]
 

I would like to know if Doc E prefers the Austrian School or the Keynesian School. If we can get an answer to that, I suspect we'll know more of his thoughts. However, such a decision, intervention, may not be his to make, and he has simply stated a concern given to him.

Malcorian Vandsteidt
Posted - 2011.03.26 02:08:00 - [26]
 

Edited by: Malcorian Vandsteidt on 26/03/2011 02:18:58
Edited by: Malcorian Vandsteidt on 26/03/2011 02:17:22
Originally by: Caldariftw123
I honestly don't see how they can intervene and not **** the whole game up. They gonna buy plexes to raise the price? By creating isk out of thin air? That's a GREAT idea, considering their worry about inflation .. Not. Or perhaps they'll just slam some plex into the market out of thin air, that's a nice idea - free game time, and it costs out of their RL wallet and doesn't alter our game as such .. but the actual implementation of it? A 1 day dump to buy orders wont do anything, they'd have to participate in the market for an extended period of time to keep plex prices low. There's really very little they can do.


Actually All they need to do is Create (Isk) On a CCP character that isn't tagged CCP, Buy out half the market or more and reseed those same plexes for a lower value.

ISK has no actual Value, Plexes do, So the same plexes you wanted to sell fro xxx ISK do, CCP simply reinserts the bought plexes back into the market at a lower value.

This changes nothing as no plexes were added, or removed and the exact same amount stay in circulation. However all plex prices Drop drastically due to these New "competitors" especially if CCP does this over the course of say.. 6 months,making sure the players selling high have no choice but to lower the plex prices in order to compete.

The key to a successful Venture is to get what you want, how you want it, without giving anything for it.
The key to a successful Business, is to think outside the box.

Caldariftw123
Posted - 2011.03.26 02:19:00 - [27]
 

Originally by: Malcorian Vandsteidt

This changes nothing as no plexes were added, or removed and the exact same amount stay in circulation. However all plex prices Drop drastically due to these New "competitors" especially if CCP does this over the course of say.. 6 months,making sure the players selling high have no choice but to lower the plex prices in order to compete.


It changes the isk supply, for a start, by creating isk out of thing air. Secondly, this artificial change to supply/demand will have a temporary effect, hence my comment that they'd have to take part in a massive market manipulation going on over a long period of time. Throwing a few billion isk at it wont effect the price for more than an hour, throwing tens of billions wont change it for more than a day or two, get the picture now how CCP intervention isn't so simple or has no side-effects?

Malcorian Vandsteidt
Posted - 2011.03.26 02:36:00 - [28]
 

Quote:


It changes the isk supply, for a start, by creating isk out of thing air. Secondly, this artificial change to supply/demand will have a temporary effect, hence my comment that they'd have to take part in a massive market manipulation going on over a long period of time. Throwing a few billion isk at it wont effect the price for more than an hour, throwing tens of billions wont change it for more than a day or two, get the picture now how CCP intervention isn't so simple or has no side-effects?


Small incursions over a period of time has great effect in any economy. Just look at history.

All ISK is created out of thin air. It's called Mission Agent's and Bounties. CCP going .addisk CCPmarketer 1,000,000,000,000,000,000, then buying half the market up isn't going to change much in the way of ISK itself. That ISK would make it into game eventually anyway.

The average daily ISK created is around 100 trillion anyway. (Or so).

ISK has no value in Game and whether more is created by CCP in any quantity would never imbalance the game or ISK creatd by players every day.

That's why CCP would use this strategy over any other. It's less Noticibal.. and less messy although more complicated. Also to change an economy it takes time, Short spikes will never work, however long term intervention on this level would.

I mean Honestly.. would you rather buy a plex for 400 million? Or for 280 Million. I think the answer is obvious. So CCP will put the High plex sellers out of Business. Unless they Conform to CCP's seed prices.

Another way to do this would simply be to have NPC stations sell plexes at a set value. Then in order for a player to make any money from the plex he would have to price it lower then the NPC stations.

Caldariftw123
Posted - 2011.03.26 02:47:00 - [29]
 

Originally by: Malcorian Vandsteidt
Quote:


It changes the isk supply, for a start, by creating isk out of thing air. Secondly, this artificial change to supply/demand will have a temporary effect, hence my comment that they'd have to take part in a massive market manipulation going on over a long period of time. Throwing a few billion isk at it wont effect the price for more than an hour, throwing tens of billions wont change it for more than a day or two, get the picture now how CCP intervention isn't so simple or has no side-effects?


Small incursions over a period of time has great effect in any economy. Just look at history.

All ISK is created out of thin air. It's called Mission Agent's and Bounties. CCP going .addisk CCPmarketer 1,000,000,000,000,000,000, then buying half the market up isn't going to change much in the way of ISK itself. That ISK would make it into game eventually anyway.

The average daily ISK created is around 100 trillion anyway. (Or so).

ISK has no value in Game and whether more is created by CCP in any quantity would never imbalance the game or ISK creatd by players every day.

That's why CCP would use this strategy over any other. It's less Noticibal.. and less messy although more complicated. Also to change an economy it takes time, Short spikes will never work, however long term intervention on this level would.

I mean Honestly.. would you rather buy a plex for 400 million? Or for 280 Million. I think the answer is obvious. So CCP will put the High plex sellers out of Business. Unless they Conform to CCP's seed prices.

Another way to do this would simply be to have NPC stations sell plexes at a set value. Then in order for a player to make any money from the plex he would have to price it lower then the NPC stations.


100 trillion .. ? What??

They can't just buy all the plexes then dump the market, day after day .. ANY amount of isk is imbalanced, but enough isk to noticeably and long-term affect the price of plexes in the way you are suggesting would be very imbalancing..oh good grief, I've no idea why I'm even "debating" this with you, you're the same guy from all those other ******ed threads. Go back to the "I have 1million shares, eventually they'll all sell" thread and try not to bring such ignorance into every thread you read.

Selene D'Celeste
Caldari
The D'Celeste Trading Company
ISK Six
Posted - 2011.03.26 03:32:00 - [30]
 

Originally by: Malcorian Vandsteidt

The average daily ISK created is around 100 trillion anyway. (Or so).



Try talking out of your ass less. You're off by two orders of magnitude.


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