Author Topic: Basic Roles of Economy  (Read 4162 times)

Aeterus

  • Traveller
  • *
  • Posts: 32
    • View Profile
Basic Roles of Economy
« on: June 07, 2004, 05:41:35 pm »
*Warning Long Thread*
*English isn\'t my primary language so excuse me for typos and mistakes i just hope i will get  the main ideas clear.*

Introduction
During my long years of rpging, both with dices and in pc rpgs I\'ve stumbled on many flaws, the must serious flaws i have seen in online games were connected with the economy.

Economy is one of the 4 elements which form the atmosphere of an rpg, the other 3 being the environment (graphics and sound) character development and the general in-character roleplaying level.
Games with better economy have more player interactions a more living community, and in my aspect a better desire to roleplay.

I usually use the examples of a miners and blacksmiths here because it\'s easy to explain the relations between different skills - just note this topic tries to refer to every skill in games.


Proper Division
In real life medieval times (and today too) everyone had his job - blacksmiths, miners, glass workers, jewelers, herbalists, etc ...
Sure a miner could study forging for example, but learning and mastering something takes time, and time is money, so everyone stayed strict to his job, which evolved around a couple or more skills, and may have had general knowledge in other things but it was minimal.

Games seems to really screw it in this area, in about every game i know, a blacksmith could go mine for his own ore, a potion maker could create his own vials by creating glass from sand, etc ... and in the games that do have divided crafts the devision is done also between craftsmen and adventurers which i think is very wrong. when i first seen planeshift i saw that everyone had a job and i thought \"oh goody\" but of course i was very wrong ^^

The appeal for this is high, and many players would ask themselves now \"what\'s wrong with it ?\" - the answer is simple, it disencourages the work flow between a few people with different jobs, and it always create the unrealistic \"powergaming\" where (for example) a blacksmith would buy his ore very low because he might as well mine it himself.
Since this is a game, a minute in a game is like an hour in real life, and from there after a few months of playing must players can master mostly everything, sometimes it takes longer, like a year, but if the devision system is flawed, sooner or later players will reach this mastery of everything.

I have never really seen this area solved in any game, maybe in a very few uo shards, but it was still not implemented that well. In my opinion the best way is to let people have a very basic taste of all the skills, but only be able to pick one job, and the job evolving around 2/3 familiar skills which can be mastered.
Further more people can have a few characters and each have a different job, that\'s nice and answer the need for this appeal, as long as muling (transferring items between characters) isn\'t allowed since it is nearly as bad as having the avatar characters.


Countering mass production and monopoly
In ancient times thousands of weapons and armors would be made by a workshop of blacksmiths (around 10 blacksmiths) in a city in a few days to answer the high demand  in times of wars and such, where the measuring of troopers were in thousands.

In an online rpg this doesn\'t happen, the blacksmiths ratio in the community is around 10 times more percent that what it was in real life.
That means the system should be based for it (of course X times more people would usually mean the same proportions of different jobs, so this system remains good)
so there has to be a way to counter price collapses which results from mass production with no demand.

Countering is done in three ways :
1.minimizing mass production : in the example of weapons and armors, many games allow a blacksmith to create a very insane amount of these arms, they usually do so because they prefer (as it should) slow skill improvement, which forces the need to make a lot of arms to advance even a tiny amount in skill.
The way to counter it is by making the forging process more tedious, instead of making say 5 claymore swords from X materials you make 1 claymore sword from the same X materials, (and of course give more xp to compensate for it) which works well for mining too (the miner smelt iron ore requires a lot more ore to make one bar, so he can mine a lot of ore but it won\'t flood the market with bars, yet bars will be worth more so they won\'t be bought in insane quantities)
instead of just putting the materials and making it there\'s also the idea of longer process, whereas the miner should smelt iron ore, the blacksmith (as it was in gothic1/2 and likewise) tampers the steel, overheats the blade waters it in the bucket etc (nothing too crazy, but if you break this skill to 3-4 processes, it creates more value to each sword, and instead of making 4 swords, you make 1 sword but at the same time get xp for each process which is good xp wise :] and heavier arms can require longer forging time to farther cut high-end production)
2.forcing market rates : in real life there are rates for many things, but they form by themselves and they cause some people to be poor, and some to be rich.
In a game designers wouldn\'t like this to happen of course (though it usually seems like they don\'t really care ^^), so there\'s a simple way to force certain rates - NPC\'s.
NPC\'s buy items at infinite quantity, but they buy them low and they sell those items rather high.
So let\'s say an iron bar is sold to npc\'s at 5gp, is bought at 8gp, that would lead players to buy and sell them somewhere in the middle, and it would give a certain flexibility as of how the rates would go, but also it will keep the rates safe in minimum maximum.
The biggest help it gives is to keep weapons at certain values, a blacksmith won\'t be inclined to sell his weapon cheaper than the NPC rate because than he actually loses money, and also if no NPC would buy/sell them, blacksmiths could jump their weapon prices sky high, nice for high-end tenth of arms but not so nice when a dagger costs like a house ;] (and yes i did see that happen somewhere ^^)
3.large value difference between better items : let\'s say a blacksmith sells a dagger for 100gp, short sword costs 140gp, and so on, until the master darkness mythril sword costs 10k.
Sounds nice ? it\'s not ... because if the blacksmith makes 200 swords in say a week (we\'ll presume the material cost is 50% from value), he can buy the best sword in the game.
and once he can buy it, he is considered rich and has nothing much to long to, hence the need for a higher progression of value.
The better the weapon is, the more materials and more expensive ores are required, which forms a minimal cost, this cost should be quite higher between weapons, i saw nicely presented prices in several game\'s guides (such as eternal lands, but since it didn\'t follow much of the other rules, market rates went down and everything became cheap, plus i could personally buy everything in the game after only 3 days of gaming) for example a dagger costs 100gp, then a short sword costs 8-10 time more and so on, usually a range of medium swords have a similar price difference between them, say 1k, but in the heavy category they all go multiplied again until you get to prices like 160k or even few millions for the mega heavy doom swords. and to add variety there are weapons with close prices but they have different categories. (for example axes/spears/swords or even different type of swords such as falchion would have similar costs to a sabre, but different types of falchion would have huge value differences)


Balance of material and time consumption - (surrealistic world economic root)
Everyone knows there are and always were different jobs, some pay really crappy some pay annoyingly high.
The above said is realistic, however i doubt any sane game designer would like his rpg mechanism to be even close to that.
Hence a high skilled miner in a game can mine more precious ore with more chances etc (in the goldrush every skill-less bum \"rushed\" to mine gold, just to explain there was no real skill in that except for the logical minimum).

Here comes the balance of time consumption,
i\'ll start with the general worth of a job\'s time - the simplest way to describe it is to say a miner of X skill putting X effort (effort is usually time in games) should make the closest amount of money to say, blacksmith with the same skill who puts the same effort. (this is said without element of risk, risk being the chances to lose materials and that allows crafters to make more money in the risk they may also lose more money)
Why ? because unless you do so, people will always seek the same best paying job ;] (collapsing any chances for an economy of course ^^)

To explain it farther in an example :
Let\'s say a certain miner in an hour mine 200 units of iron ore per hour and smelt them to 30 iron bars (in the same hour of course) each sells for 6gp which totals at 180gp he roughly makes per hour in his skill.
now let\'s say a blacksmith of the same skill makes 20 daggers per hour (3 minutes per dagger for this example)
the value he makes from the daggers should be around the 130-230 gp, that means making say between 6-12gp value per dagger.
Of course there can be a bigger difference here, but the role is to keep from having one of them making 100gp per hour and the other making 500gp per hour (again both of them having same skill and putting same effort), these differences just appear in so many games, and lead people to change the classes\' job after a few days of playing because it\'s unfair in quite a serious way.

Even more, The minimal/maximum NPC rates explained in the previous role help set the minimum and maximum profit the worker makes. so in this example if the blacksmith buys his supplies from an NPC he\'ll make this minimal profit (considering he sells to an NPC of course) and if he buys them from a player he\'ll make a few extra gold pieces.
The miner can get better rates for his ore, just like the blacksmith can get a better price for his well crafted daggers from players - the miner gets smaller differences then the blacksmith, but since he makes bigger quantities it sums up.
And to keep the balance of workflow - if we presume a blacksmith has a steady miner supplier, the blacksmith would require about 30 iron-bars for this hour of work ;]

Just to remind, profit isn\'t the value of the item, it\'s the [value of item] - [value of materials].
In my opinion value of materials should be at least 50% value of item (in NPC rate).
The more jobs are involved in getting the materials for the item the higher this percent can go, and it can help counter situations where the crafter makes too much profit on expensive craftable items.


Conclusion - the not so optimistic truth
In my opinion, those are the basic and important rules for a living a stable economy.
An mmorpg should always have a skeleton where an economy can exist even with minimal number of players with the help of NPC\'s, where the more players establishes their hold on the economy, the more everyone benefits from it and the stronger community bounds form.

I have noticed all mmorpg\'s i played, even the p2p ones failed miserable in nearly everything that was said above, the closest thing to a good mmorpg economy i can recall was in eternal lands, but even there it was so miserably implemented that everyone could buy everything on their first week in the game.

I just wanted to share my thoughts so everyone who read that far (you are insane ;) ) will get some thinking and won\'t be surprised if people start whining about economic problems in 2 years when this game will be in a more developed version.

Having some experience with graphical and programming game development myself - when i first saw planeshift i thought and still think it\'s quite a remarkable piece of effort evolved, but when i think about how much demanding a good mmorpg is, i don\'t hope for much, it\'ll be quite extreme if PS will succeed in following even 1 role out of these three - and this is just the economic element.

Other than that i wish the staff best of luck, and nice job so far, you r0x ;]


« Last Edit: June 23, 2004, 11:44:44 am by Aeterus »

Kiva

  • Veteran
  • *
  • Posts: 1366
    • View Profile
(No subject)
« Reply #1 on: June 07, 2004, 07:27:01 pm »
Definitely a great post with some thoughts put into it. Way above forum standards, that\'s for sure. :)

Anyway, let\'s get moving. You talk about giving good items a high value, well then I must say this is thought of already. A quote from the settings page:

a good steel sword 350 tria
farmer\'s one month salary 250 tria
healthy, trained pterosaur 45,000 tria

Don\'t expect blacksmithes or miners to make a LOT more than this, unless they\'re top notch and provide for a whole top-guild (or several of them) that pay full price for everything. :)

As for adventurers and so on... Well, I simply hope that magical and rare items will indeed be very rare, or simply so rare that people keep them to themselves (or trade for other magical items) so only the best can have them, and the best will get them. That\'s just a hope, though.

Anyway, good post. :)
\"Somewhere over the rainbow...\"

Aeterus

  • Traveller
  • *
  • Posts: 32
    • View Profile
(No subject)
« Reply #2 on: June 07, 2004, 07:51:51 pm »
Thx for the feedback. (you actually read it ?? nsane ;] )

Well i was reffering to the money difference from buying the next better item (for example between silver and golden falchion), since if the difference isn\'t big you can just put a little more effort and you get the better item and so on.
for example if you played ultima online you could get a full plate set + best weapons in around a thousand or two, a house costed there 150-300k, that didn\'t really help the economy since you could make a few k\'s in a few days and then you wouldn\'t really need money anymore. (the house was just like a bonus) ...
that\'s why according to this role the temporary weapon prices they made for this pre-alpha (ye ye i know it\'s temporary but i\'m just noting it as an example), wouldn\'t really last long because the price difference between the weapons is very small.

And of course higher skilled workers should get higher pays in my opinion, that\'s what inspires progression, eh ?
(but that\'s about the character development element ;) )

As for the rare items, well said - i couldn\'t agree less :)

dfryer

  • Veteran
  • *
  • Posts: 1070
    • View Profile
(No subject)
« Reply #3 on: June 07, 2004, 10:28:36 pm »
I think that the economy will have to be fairly tightly controlled by NPC price setting - \"free\" online economies spiral out of control rapidly due to a lack of real world constraints.

What is a realistic timeframe for a hardworking and fortunate player to become a) middle class b) fairly wealthy and c) ridiculously rich?  (In terms of either RL months of participation or hours of play)
Quidquid latine dictum sit, altum sonatur.

Kiva

  • Veteran
  • *
  • Posts: 1366
    • View Profile
(No subject)
« Reply #4 on: June 08, 2004, 12:02:33 am »
Honestly, a standard, hardworking player should only reach somewhere around middle class. Getting better than the rest takes skill, and if you don\'t have those skills, you\'ll always be one step behind, and 100,000 trias poorer. :)

A good economy is a bit like the real world. Once you get your first fair amount of money and you actually have what it takes to invest them in a project, then it just starts rolling and you make more and more, however if you make a mistake it can all crash below your feet. So you must be careful not to come falling down once you get up to the top. That\'ll hurt. :)
\"Somewhere over the rainbow...\"

Midnight Falcon

  • Traveller
  • *
  • Posts: 19
    • View Profile
(No subject)
« Reply #5 on: June 11, 2004, 05:20:47 am »
I agree with Gronomist, most people should only make middle class, thats after all what middle class is, and good job Aeterus, its obvious u put alot of thought into this, and i agree with you all the way, the economy does need to be tightly controlled, having NPCs keep the supply and demand levels right is a perfect solution, and ive found alot of games too that everyone has ridiculous amounts of money, *cough cough *unescape cough cough*, and everyone has a rare item because sum idiot hacks and sells millions of \"rare\" items... man i hate hackers, by the way ( i know this is not really on the topic) but what security does PS have against hackers? i mean it looks like and amazing game but many awesome games have been flooded with hackers who made short work of it soooo, is it just an honour system, or is there a really good way that hackers are being controlled?

\"Do, or do not. There is no \'try\'.\"

\"Never interrupt your enemy when he is making a mistake.\"
- Napoleon Bonaparte

Kiva

  • Veteran
  • *
  • Posts: 1366
    • View Profile
(No subject)
« Reply #6 on: June 11, 2004, 04:52:42 pm »
Hacker security:

Rule #1: Don\'t give your password to your friends, roommates, parents, dog (or any other pet), brother, sister or any other person in the world.

Rule #2: Don\'t give your account name to .... look above.

Rule #3: Don\'t host uncontrolled FTPs, Apache servers, etc. on your computer, so people can gain access and somehow see your password.

If you do any of the above things, and your account somehow gets taken, then it\'s your own fault and you are the one responsible for everything. Neither the PlaneShift team nor Fragnetics will give you back your password, if you should forget it. There will be a password retrieval service that you can use. If you happen to forget your email password, and your account password, then it\'s your loss.


That\'s about it. :)
\"Somewhere over the rainbow...\"

Xordan

  • Crystal Space Developer
  • Forum Addict
  • *
  • Posts: 3845
  • For God and the Empire
    • View Profile
(No subject)
« Reply #7 on: June 11, 2004, 07:22:20 pm »
Rule #4: Don\'t use the same password for everything.
Rule #5: Don\'t go to a security forum and start bragging about how 1337 you are.
Rule #6: Keep your PC updated.

And to actually answer your question:

Ps has a anti-cheat system called Paladin Jr, which should provide very good protection, and also most of Ps is server side, so hacking the game is very hard to do.

Back to the original topic:

Yeah, very good. I can\'t see much wrong with what you\'ve said Aeterus. :)
« Last Edit: June 11, 2004, 07:22:30 pm by Xordan »

Aeterus

  • Traveller
  • *
  • Posts: 32
    • View Profile
(No subject)
« Reply #8 on: June 23, 2004, 11:06:35 am »
Thanks for all the comments :)

I just noticed i mispelled in the topic and the body - \"roles\" instead of \"rules\".
*cough* *cough*

Rulin

  • Wayfarer
  • *
  • Posts: 2
    • View Profile
(No subject)
« Reply #9 on: July 01, 2004, 06:46:39 pm »
Rule #7: Dont use Winblows.

:)

Kuiper7986

  • Veteran
  • *
  • Posts: 1031
    • View Profile
(No subject)
« Reply #10 on: July 01, 2004, 07:01:45 pm »
It depends how your looking at the economy in general. Are you looking at it Microeconomically or Macroeconomically?
My name is NOT pronounced, \"Kway-per,\" it\'s pronounced \"Kye-per.\"

Aeterus

  • Traveller
  • *
  • Posts: 32
    • View Profile
(No subject)
« Reply #11 on: July 03, 2004, 12:44:16 am »
Quote
Originally posted by Kuiper7986
It depends how your looking at the economy in general. Are you looking at it Microeconomically or Macroeconomically?


Is that a tricky question ?? ^^

Well, if i understood the question right, you\'re asking if my point of view on the economy is based on the general concept of economy, or the way mmorpg\'s evolve to through macros (mass production etc).

Well, the analyse is to both actually ...  in the general point of view, macro simply allows you to do an action repeatitvly without being on the comp, so a macroeconomy isn\'t very different from a normal economy, since in most games people can mass produce (for example) without even using macros, therefore my roles were directed for both economies. (as both economies suffer from not \"following\" these rules)

However there\'s something i should mention, as i have written in the rules ... where craftable items should take longer to make and therefore have respectable award - where in most mmorpg\'s you craft a lot of items to gain skills/money, the number of items should be reduced and an added time and complexity should be added to the making of each item instead.
This doesn\'t only help stablize higher item prices, it helps to remove the unnecessary one-man massproduction seen in most games. (which encourages macroing in my point of view)

snow_RAveN

  • Hydlaa Notable
  • *
  • Posts: 736
    • View Profile
(No subject)
« Reply #12 on: July 03, 2004, 10:22:10 am »
the economy fails because theres no daily expenses like food, taxes, ect ect ect

with out a proper way of \"recycleing\" the cash players can always hoard huge ammounts of bling bling in their banks easily and this deflates the value of the currency thus makeing every thing more expensive.

classes which go monster hunting will have less gold ( by decreasing the drops) than players who choose to serve in the economy with less rare items ( sword of +5 or something) this means players will have to stick to certain unmagical weapons for sometime.

in real life soilders never become rich unless their generals they make just enough to age happily . in order to have a proper working econemy we have to model it after a working system EG. RL

Yes even with taxes you can still become rich just like in RL so you dont have to worry its just harder for PVP players to make cash than crafters

and this will encourage more player run guilds made out of crafters to fund/power their foot soilders

doesnt it sound better ?
« Last Edit: July 03, 2004, 10:23:36 am by snow_RAveN »
Quote
Originally posted by DepthBlade
I am not as good as you with posting totally random pointless things that neither are relative or make any sense.

Cyberchu

  • Hydlaa Citizen
  • *
  • Posts: 231
    • View Profile
(No subject)
« Reply #13 on: July 03, 2004, 10:57:13 am »
Then people will create an account and transfer all their bling bling to that one and rarely logging in on it so that they dodge tax.
Under construction

It is through suggestions and critisisms that we improve our ideas

Remember to

Aeterus

  • Traveller
  • *
  • Posts: 32
    • View Profile
(No subject)
« Reply #14 on: July 03, 2004, 06:51:03 pm »
Well, it\'s true that people become too rich in mmorpg\'s because they have no real expenses (like taxes, food, lodging etc), while i agree with that, i just know only a very few games will force expenses, and my set of roles were designed to fit the general mmorpg.

Instead of having daily expenses, i have borrowed an aspect from mmohnh (massively multiplayer online hack n\' slash), where there are always better weapons and they cost a lot more.
this generally make advanced to the next \"better item\" longer, and like i mentioned unless it\'s used people become \"rich\" (able to buy the must expensive items) very quickly.
And to prevent crafters from getting too rich because of the gap of item cost, i have suggested that better items take longer to make. (so the added profit is proper)

From a certain point of view, having daily expenses makes a more realistic world, and therefore a more realistic economy, but like i mentioned in the original post, this is a double sided coin, because in a \"realistic\" world, there are rich and poor people, a miner will always stay poor for example, while a jewel maker will become richer quicker than most people.
So unless crafts are balanced, like i have mentioned in role number 3 (creating a surrealistic world economy), people will persue the better job always (thus is the nature of all mmorpgs), which means nobody will work in mundane tasks such as mining which will obviously collapse any hope for economy.
Therefore balance must be achieved (common profit/fun for all) in an mmorpg in the expense of realism.
And as it has risen in the tax thread, people don\'t play mmorpg\'s to encounter things we hate in realife (taxes :[ )
so things such as this will only appear in a very few games - and while personally i like daily expenses such as food and lodging, their effect on the economy is close to nothing.

In terms of fun and enjoyment, our real life economy is a disaster, people should pounder over that.