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| Concerning Credit sale | Started by: Sal_Giaquinto on Nov 13, '10 01:21 |
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Single Credits
Multiple Credits
Perhaps I'm wrong - but is there much of an incentive to purchase multiple credits at a higher rate then which individual credits are sold? |
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MR players have no business sense. End of.
:D |
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| Reply by: Ancalagon at Nov 13, '10 01:24 | |
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Agreed :D |
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| Reply by: Quoth_the_Raven at Nov 13, '10 01:28 | |
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I've been inflating the credit market like crazy :)
Though credit inflation usually is a precursor to an imminent war...
Just sayin' ;) |
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| Reply by: TWENTYCHARACTERLIMIT at Nov 13, '10 03:29 | |
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I'll have six?
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| Reply by: Vantino at Nov 13, '10 06:06 | |
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Not really TWENTYCHARACTERLIMIT.
I've seen inflation after wars and after the owners up the credit bonuses for a short while as well. |
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| Reply by: Ancalagon at Nov 13, '10 16:20 | |
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A couple of things:
First, an offered credit bonus would mean that more credits are created. The more credits the are, the LESS their value. That's inflation. The more dollars exist, the less one is worth. Not more.
Second, who knows when those bulk offers were made. When they were posted, the single CD price may have been higher. |
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| Reply by: Cosmo_Kramer at Nov 14, '10 01:59 | |
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Cosmo, as correct as you are about a regular economy, the credit economy just doesn't work that way.
Because most credits are either personally stored (and off the market) or arbitrarily used, the true number of credits flying around becomes completely irrelevant to the value of the credit; moreover, the prices are determined based on current demand - and the current amount of people willing to sell.
Just because more credits are created during a bonus does NOT necessarily mean the overall demand is lessened.
Hypothetically, there could be less credits around but cheap prices for them nonetheless because the overall demand is outpaced by the amount of people wanting to sell.
So you're right about a regular economy, but definitely not the MR economy. We may very well have more credits around as of now than last week, but since the current demand seems to be higher than those willing to sell, the inflation is happening anyway. |
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| Reply by: TWENTYCHARACTERLIMIT at Nov 14, '10 05:08 | |
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Okay so I'm double-posting, kill me :(
Ancalagon, usually the credit market inflates prior to a war because those who are aware of the upcoming war (the attackers) generally begin buying credits like crazy (thus, higher demand) because of the risk of death only they are aware of.
During the war, it peaks since those who survive the first wave scramble to credit the money they do have.
And then following the war, massive deflation occurs when all those who either survive or start over begin cashing out those panic-induced credits.
Example being, after the 5-6 wars we had back in Mid-July thru August, there was a loooong period of time (3-4 weeks, maybe?) where the credit plummeted to almost 120K since everyone was cashing out and the demand for them became suuuper low. |
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| Reply by: TWENTYCHARACTERLIMIT at Nov 14, '10 05:20 | |
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Twenty you are actually quite wrong. |
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| Reply by: Underdog at Nov 14, '10 14:16 | |
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Twenty you are actually quite wrong. |
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| Reply by: Underdog at Nov 14, '10 14:16 | |
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And thus, the creation of more credits drives the price down :) |
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| Reply by: Cosmo_Kramer at Nov 14, '10 18:01 | |
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Using real money to buy credits to sell into cash is essentially the exact same process as people cashing out existing credits - my point was, after a war, everyone is cashing out (regardless of how they acquired those credits) - thus, deflation.
And Cosmo, the cashing out of said credits exceeding the demand to buy them in post-war phase is what drives prices down - not the existence of more credits - our credit market is too small-scale to truly operate the way a state economy would, as you're suggesting! |
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| Reply by: TWENTYCHARACTERLIMIT at Nov 14, '10 21:28 | |
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I don't really see the difference. Whether it's because more credits exist or because more ppl are selling than buying, the existence of more credits ON THE MARKET is simple inflation, which drives the value of one down. Even if more credits exist which are not on the market, meaning that people have them in their pocket, this makes them less liable to buy from the market, as they normally might, which also suppresses demand. |
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| Reply by: Cosmo_Kramer at Nov 15, '10 02:18 | |
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Cosmo, I believe you are looking at it from a currency inflation perspective rather than a demand and supply perspective. Credits are a commodity that are used. If they were simply exchanged for cash and continued to exist your argument about more credits devaluing their worth would make sense. But since they are purchased in order to be used the demand for them is unlikely to fall until the price becomes astromonical.
That's only worth 2 cents by the way :) |
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| Reply by: Eggs_Benedict at Nov 15, '10 13:11 | |
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Its kind of confusing to explain, but I'll give it a go. Its not really a traditional supply/demand thing. There is always a steady supply (but not always listed) , there is always a steady demand. The actual variable is "the ranks of those that are the big suppliers". If you have 10 credits and are a gangster, you will gladly sell those for 225k a pop, get 2.25 million, and get three BGs. However, when you are a don, making a 1.5 mill a day, or a CL making 6 mill a day.. those 10 credits you would rather use yourself for toolbar/MIAs/Whatevers... since 2.25 mill at that rank, well, means a lot less.
So now you have a situation where the big sellers, now have the income to be big buyers - and they stop buying with RL money and now buy with MR money.
So I guess you can call it inflation - but its not a global thing, its their own personal inflation. 2.25 mill to a gangster is a shitload, 2.25 mill to a don is chump change.
So the expensive credits you see listed a good chunk above the lower cost ones are there for one of two reasons - thats their "if it sells, ill be happy at this price, but im in no hurry to part with these credits unless its really profitable" or the other reason being that the market is volatile and when they listed it it was actually a good price, or the 2nd best price (with them counting on the cheapest being purchased, and then the next in line is then)
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| Reply by: TheWildCard at Nov 15, '10 19:18 | |
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and then the next in line is them*) |
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| Reply by: TheWildCard at Nov 15, '10 20:23 | |
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1 more thing that bothers me, if you buy more bulk isn't supposed to be cheaper than a single prices? |
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| Reply by: UmbertoAnastasia at Nov 17, '10 08:33 | |
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^^^ scratch that, it only works on RL . :( |
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| Reply by: UmbertoAnastasia at Nov 17, '10 08:47 | |
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That's what I was getting at Umberto - but I guess the prices change quite a bit. Alot of random variables involved. |
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| Reply by: Sal_Giaquinto at Nov 21, '10 14:27 | |
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