Sun Jan 01, 2006 3:21 am
I would enjoy it if TNT would release a study based on it for everyone to see.
You are also fogetting likly the biggest money in of everything: Money that has been duped. Sadly enough, a large chunk of the money in the economy of any massivly multiplayer game was illegally created. Some games are better than others at avoiding this, but when one thinks of the inflation that has occured, and then looks at all the money outs with pretty small money ins in comparison(remember, when you buy an item for 100k and resell it for 1 million, 100k exits the economy. The 1 million just changes hands. Likewise, when you win the jackpot at any game, no money is being added, you just get other peoples money). But yeah, I would guess that at least 1 out of every 10 neopoints was illegally created.
Another big money in in bank interest. While us poor people might ionly get 100 or so a day, really rich people rack in money by the thousands. This can add a whole lot of money to the economy even with just a couple of really rich dudes.
You are also fogetting likly the biggest money in of everything: Money that has been duped. Sadly enough, a large chunk of the money in the economy of any massivly multiplayer game was illegally created. Some games are better than others at avoiding this, but when one thinks of the inflation that has occured, and then looks at all the money outs with pretty small money ins in comparison(remember, when you buy an item for 100k and resell it for 1 million, 100k exits the economy. The 1 million just changes hands. Likewise, when you win the jackpot at any game, no money is being added, you just get other peoples money). But yeah, I would guess that at least 1 out of every 10 neopoints was illegally created.
Another big money in in bank interest. While us poor people might ionly get 100 or so a day, really rich people rack in money by the thousands. This can add a whole lot of money to the economy even with just a couple of really rich dudes.
Sun Jan 01, 2006 5:03 am
What am I working towards... I think I was just blindly collecting data, in an effort to see how the economy is shaping and what factors move it around. Even though avatars and battledome inflate item prices, the normal economic factors still affect Neopia. If there is less money in circulation, there will be less to spend and it will be worth more. In an effort to sell, people will HAVE to lower prices or else their items will never be bought. thus, NP will be "worth more".
As for a hypothesis, I'm still thinking of one. Maybe I'll produce theories as I look over things again. The next step is probably to see in what realm of significance each item affects the economy.
Thanks for all the input though, everyone
As for a hypothesis, I'm still thinking of one. Maybe I'll produce theories as I look over things again. The next step is probably to see in what realm of significance each item affects the economy.
Thanks for all the input though, everyone
Sun Jan 01, 2006 9:08 am
bumpty85 wrote:i will update my list tomorrow, (happy new years from hk, btwbut i wanted to comment on the "items" factor of the whole wealth in/wealth out thing.
i took this into account, and i boiled it down to the fact that i was talking about the economy as a whole, not the individual wealth of each player. i know that there are one use items, consumable items, and the fact that restockers gain incredible amounts of wealth from restocking. but here was my thought process:
say i need to spend 5 dubloons on a training course. in order to do this, i would either need to find the dubloons through a random event/coltzan's shrine, OR buy it from another neopian (trade/shop). if i find the 5 dubloon coin on the site and use it, no money has been spent, so there is no money in or money out. if i buy it from a shop, i have just transferred all those neopoints from myself to another player (who also had to have found those dubloons somewhere)... and so no money has moved in or out of the economy. yes, the "value" of my pet has risen... but that should not affect things such as inflation.
consumables are a similar situation... the snowballs i use in the BD are found or bought from another player, so no money is created or destroyed
and, of course, restocking. when someone restocks in a neopian shop, they are sending money out of the economy (say an orange chocolate for 200 NP). when they sell this item to another player, the player is transferring the true value of the item (say 10,000 NP) to the restocker. thus, no money has moved into or out of the economy, except the original 200 NP. the restocker is richer, but the economy shouldn't change.
that is why i focused on neopoints "created" or "destroyed" - received out of thin air (from TNT i guess) or disappearing into thin air.
you have interesting factors about the value of items and the idea of "total wealth" (including neopet value), as well as individual wealth... but please correct me if i'm wrong in saying that these factors shouldn't affect inflation. there may be an error in my thought process, so tell me. anyway, those types of things are probably intended for another type of analysis... but i'm gonna sleep on it and think about it first =)
Hm...I dunno if im wrong here, but:
When you buy an item for 200 np from a shop, yes, 200np exits the economy. However, when that other neopian buys that item for 10,000 np, then the restocker gets richer, but the neopian doesnt get poorer. He still has a net worth of 10,000 from the item, which can be traded for money, but is still counted as an increase of wealth in the economy. There doesnt need to be money for there to be wealth.
Sun Jan 01, 2006 9:35 am
Okay. I'm totally lost. The only fact I know about economics is what a great, wise man once said: 'It's the economy, stupid.' I like the theories idea since they can be dumped or rewritten as more information comes along. I also think Bumpty and endeavourl should team up to write this thing. 'Here's to the economy!' - quote, <- this stupid (me) 