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Xinhuan Game profile

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Sep 23rd 2012, 5:29:31

Originally posted by LATC:

^Isn't that saying oil demand is inelastic in that the qty used in a reset remains constant regardless of price (up to a point)?


Also, I'll like to point out that a reset is 60 days long, if you are looking at economics at the scale of "60 days" as "one unit of time" when calculating elasticity, then that's just stupid.

I could say that food demand is inelastic too, by your theory, since the qty used in a reset remains relatively constant. And the amount of turrets, etc.

Yes, you can say that oil is "less elastic" than food, so it is relatively inelastic, but to say oil is inelastic is just wrong. People will choose to stock oil instead of food if they believe it is profitable, and that alone is enough reason to cause price spikes and price crashes - the effects of supply and demand on a day-by-day basis - not a "60 day unit of time" basis.


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The real reason why oilers do not place top 10 is because of the way oil price peaks and falls, it typically peaks in weeks 3-5 because that's when the largest amounts of grabbing are done (at higher and higher land sizes and jet amounts), but because good players don't play oilers, the oilers remain relatively small in size in the bottom half of the ranks and the oil supply doesn't grow to scale with the increasing demand for oil.

Once week 5 passes, people stop grabbing and start stocking, oil demand falls, particularly people with oil stocks trying to get rid of it, if you are trying to stock as an oiler, it is simply just less efficient than being a farmer BECAUSE the oil demand simply isn't there to cause oil prices to be anywhere remotely near being competitive from week 5-7 of the reset in the stocking phase.

Conclusion: Less people need to play oilers for oilers to be competitive. Or an artificial oil floor price has to be introduced (oil PM price) at a significantly high enough price, which simulates an infinite demand for oil at that floor price. Or an increase in oil demand in the form of raising the oil needed from 1 oil per 25 units to 1 oil required per 10 units or even less.

Edited By: Xinhuan on Sep 23rd 2012, 5:33:22
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