| cafecafegames | Friday, August 30, 2024 - 04:53 pm 
Andy, why is EP price still falling while demand is greater than supply? |
| Andy | Friday, August 30, 2024 - 06:00 pm
The base price is being reduced for some time.
it has nothing to do with market conditions.
It has a positive effect on the profits of many corporations who are now
paying less for EP.
The market price is based on the base price.
With shortages, the market price will go up to a maximum, maybe around 150% of base price.
If there is a surplus, the market price will go down to about 50% of base price.
We always hoped that players will build more corporations if the price goes up.
If this was true, we could have let the market price go much higher or much lower depending on the market.
but we have seen that players, in general, do not react to a higher price
and letting a product drift up very high could undermine many other corporations and cause them to bankrupt.
Hence the MAX price.
If the case we have now, base price is being reduced gradually and the MAX market price goes down with the base price.
Example:
Players could now build many corporations that produce Oil.
there is oil in large quantities in all C3 countries and a HUGE shortage.
also enterprises can build many Oil corporations.
Oil corporations are very profitable.
If we would let the market price increase, it will end up 100 time higher.
nobody would be able to purchase Oil and hundreds, or maybe thousands of corporations would bankrupt. |
| cafecafegames | Friday, August 30, 2024 - 07:30 pm
Pity.
I invested a lot in my setup of WFs, WT corporations and the ability to be self sustainable.
Now my profit is less than expected.
Is really hard to think a good economic strategy when conditions change in this way.
Thanks for your answer. |
| Andy | Friday, August 30, 2024 - 08:19 pm
WF will remain profitable.
We were very clear about reasonable profit levels.
you could read the discussions we had several weeks ago about the profits of WFs.
we said all along that they will be profitable but warned that countries will not be able to base their economy on wind farms and that profits will be good but no magic.
other than before, EP is now sold to the country not at base price but rather at market price which is much higher,
and,
the quality is increasingly taken into account and at the end,
the full quality of EP will be taken into account and countries will pay more for EP.
Just make sure you have no shortage of wind turbines in the country.
negative numbers of wind turbines will result in bad maintenance and EP output is already much lower.
don't go over 1000 wind farms as maintaining them becomes a major issue.
all this has been on the game news and the forum. |
