PDA

View Full Version : Establishing a stock market and an economy



Beezer
09-19-2005, 10:12 PM
I’ve seen it suggested in another post that there should be a stock market (now that we have a bank and savings accounts and all). Since then I’ve been giving this some thought. Feel free to tear my idea apart and improve upon it.

For there to be a stock market, there has to be companies to invest in. So let’s start there. We’d have to allow users to develop companies. These companies would need a product or service to peddle. This could be done by designating certain regions or cities as “technology” or “banking” or some other general industry term. These designations can come from real world generalities (like Japan would be a technology region). Then the owners of those specific cities or cities in that region would be able to create a start up company (with a loan from the bank) that specializes in some part of that sector. Example, if you are a tech company you could specialize in making chips (like Intel). Then, your product or service could be sold to other individuals or companies that could use your product in any number of ways, including using it in some other product (like they buy your chips to put in the oil drilling machines they sell. This could add a new layer to the alliances that are created.

From there, as companies grow and need cash to expand their operations (like opening a call center in India, which further complicates things), they could then have an IPO to sell shares in their company. Thus our stock market would be born. From there, your stock would fluctuate in value based on number of outstanding shares and how much people are willing to pay for the stocks (similar to real life). Then, users could buy/sell stocks to/from each other thus affecting the price. Then, as companies make decisions that effect the outlook of the company, stock prices would fluctuate. Say I’m expanding my company by building more capacity. Demand is high so I can get top dollar for my chips. Thus, revenues for my company would increase, making dividend pay-outs better (more complexity) and the stock more attractive to own, as the share price is rising.

Now, I know you are saying, “Beezer, this seems like it would foster peaceful alliances as everyone is buying up supplies and starting companies, etc. How does this help the war aspect of the game?”

When a city is attacked, any companies owned by the city owner are either destroyed or taken over by the new regime. This could disrupt the entire supply chain of certain products thus driving the price of goods up (demand is the same and supply is greatly depleted). The person taking over the city would have the option of completely destroying the operations of the company or simply taking it over. The tactical advantage in this would be that if you are one of three oil drilling companies in the world, it would make sense to you financially to destroy or take over one of the others (increased price or increased capacity plus tax revenue of the city you conquered).

Whew! That was a long post!! Now….tear it apart or improve upon it!!

Cato
09-19-2005, 10:40 PM
I think before Mickey can implement something as in depth as that (which I am totally for), he should make it possible (and necessary) to buy resources on the open market. Instead of directly costing money, armies should cost cotton to maintain and oil to transport.

This way, prices will naturally adjust to market conditions and all resources will move to their fair values (and Mickey wont have to regulate the conversion rates nearly as much).

Mickey might just have to adjust the rates of resource harvesting to align somewhat with the demand for each resource.



Regardless of how it's done, I feel very strongly that resources should be able to be bought, so that the "demand" part of "supply and demand" can come into play.

And by the way... Mickey, I love the bank and financial overview pages. Keep up the good work!

socrates
09-21-2005, 05:11 AM
how bout a trading area for Oil & the like.....
If you're short of cotton and you need just a little more to create your army,
no one's going to want to wait for theire cotton fields... They'll want the army now !

this MMORPG has a rather good infrastructure for markets going already....
http:/uc.gamestotal.com

jduddy
09-21-2005, 06:43 AM
Rather than investing in the "World Bank" consider investing in developing markets. The higher interest rates could be tempered by a higher risk...the risk of the market going broke and you could lose all of your investments.

Examples

[U]Market/Interest Rate/Volitility (1 is safe...T Bills)
USA/3.0%/1.0
World bank/ 3.75% / 1.5
Emerging market (Asia)/ 6.0% / 2.0
Russia/10.0%/ 3.0
South America/15% / 4.0

The higher the volitility, the more often a crash could be programmed into the game.

I feel there is a great deal of potential here.

rasqual
09-21-2005, 07:55 AM
My only observation is that naming specific countries based on our experience in the real world is meaningless unless the dynamics that make the intuitioin obvious are also in play in the game. I'll continue to resist sentimental thinking about the game (by which I mean laboring under the delusion of associations between the game and the real world which simply do not obtain).

Not intending pejoration with any of those locutions, sorry.

RossumsChild
09-21-2005, 04:22 PM
that is a LOT of complexity, and completely internal.

I think one of the major advantages of Google earth is the opportunity for "real world" crossover.

Why don't you simply link 'stocks' to entire markets?

Grab the daily market composite for a handful of different national and international markets daily and let people buy a 'share' in that market for 1/10th of its point value. Then that share remains worth 1/10th of the point value regardless of what it fluctuates to.

It allows Google earth to be more interactive with the real world (later we could make it possible that whoever owns New York controls the NYSE, and therefore gets a percentage commission on each buy/sell of an NYSE composite share.

For simplicities sake, make shares purchasable from the world bank, and infinite in available number. This way there is no weird crossover that might change the demand of the share and sever it's connection to the actual 'real world' market.

I'd probably start with just three, the composites for the NYSE, Nasdaq, and AMEX. Then we can always add others later.

A script can be used to grab the ticker value out of an RSS feed, so there is literally no administration work to be done once the system is in place. Nobody has to 'manage' the market in any way. It runs itself.

Stanley
09-21-2005, 04:32 PM
That is an amazing idea.

You're saying, real world data, for economic markets.

Brilliant. I'm sure Mickey will have it done by tonight.

RossumsChild
09-21-2005, 04:37 PM
Done by tonight?!

Don't push the poor man over the edge, dude. Remember, Mickey is GEWar's most precious natural resource: If he has a nervous breakdown, the game is over. :)

Let him think about it and consider what he wants to do.

I personally find it attractive because it is straightforward to implement and requires so little maitenance for the dev team. No mess, no fuss. Just pull the data and drop it in. It's not like the NYSE or NASDAQs are going to shut down this year.

Mickey
09-21-2005, 05:43 PM
I like the idea, but it won't happen tonight. I have a softball game and wife, kid, job, etc.

However, think it's a great idea. Maybe even "sell" individual stocks. Why not let people buy stock in Google and make (or lose) money accordingly?

There's a lot of possibilities here, most of which can run unattended once they're created. Good stuff.

mikldt
09-25-2005, 11:57 PM
Awesome idea. An open market is definitely the way to go for this game. It has so many benefiets, the most important of which will be to make the game really life-like. There will be some new strategy involved, such as investment, and trying to predict the demand on seperate items. The game will become much more competitive, because as the demand for, say, troops goes up, the cost of troops will go up as well. There would be zero management involved, because the price would just be what people are willing to pay for items, an administrator would just have to figure out how many troops there realisticaly are available, and the other resources just become available naturaly through oil wells, etc.

I was thinking of something similar a while ago, and my first idea was using stock ticker rss, which is incredibly simple to import into php. The problem, though, is exactly as rasqual put it: there are no real parallels between the game and the real world. It would be very cool to implement, but it makes little sense to force the supply in the GEwar world to match the demand in the real world, two completely seperate worlds with different dynamics.

Such a system serves two purposes: it provides the investment opputunities RossumsChild seems to be looking for, and it helps manage resources in the game. As the system develops, I think we will begin to see true-to-life investment oppurtunities, ranging from the awesome World Bank Mickey has already implemented for secure, but relatively low-profit income, to live markets with high risk and high potential income. Also in there, I hope we find even more types of investment, jduddy's idea is certainly an interesting proposal.

Great ideas everyone! Please post your thoughts because I think this would really be a huge improvement to the game, and we should try to hammer out a workable system that Mickey can think about implementing.

rasqual
09-26-2005, 12:03 AM
But I say use the GE UI for as much as possible. Like when you have board meetings before the IPO, require that the directors navigate to the venue in G-force mode, and execute a successful landing at a real airport.

;-)

mikldt
09-26-2005, 03:25 AM
I'm all for that suggestion!

Taking full advantage of the GUI, this could definitely be a first-person game, fly to the trading floor, to the bank, directing your armies from a command post, and driving to the store to buy your nukes.

How about it, Mickey?

Timmetie
09-26-2005, 05:47 AM
I like the idea, but it won't happen tonight. I have a softball game and wife, kid, job, etc.


you cant arrange for them to "dissapear"?

i'm sure god would understand.

with you being his co-worker and all.