Economics # Economics is the study of human choices when it comes to managing resources (money, time, happiness, raw materials, goods, and so on). In many strategy games, economics is an important aspect of the design. Balancing the resources of your world can be a fun part of the game. Economics is also important in multi-player game dynamics: you want to reward people for making money, yet you don’t want them to have so much power that new players cannot have fun. One thing I want to explore is how location influences economics. In high school economics, businesses compete by price. Whichever business sells for less will win. But if transportation cost is a factor, then both businesses can coexist, and the player has to make interesting decisions about where to place new facilities[253] to balance all the variables (availability of labor, transportation cost of raw materials, transportation cost of product, tax rates, zoning laws, etc.). Is it a game or a world? [254]

Economies in a virtual world [255]

AI Economics Agents [256]

Medieval Demographics Made Easy [257]

Medieval Price List [258]

Transport system in Widelands [259]

Economic model of Pirates of The Burning Sea[260]: labor, prices, markets, upkeep, taxes, and world events It’s hard to come up with rules for economics in an online virtual world when the underlying costs are so different. In the physical world, “objects” take resources to build, but they typically do not use resources to keep (if you don’t use them), and you typically do not get those resources back when you throw the object away. Therefore our real world economy is based on buying things. In the virtual world, the “objects” take a small amount of memory and if you destroy the object, you get the memory back. At the same time, the very existence of a virtual object costs CPU time, which cannot be recovered. Therefore the virtual world economy might be based on renting things. If your world’s economy reflects the underlying costs, a diamond ring may “cost” as much as a bucket of sand. Although this reflects real costs of running your server, and therefore would discourage players from overloading it, it may not make sense for your game. In addition to the economics of objects, you have to consider the economics of living in the world. In the physical world, mere existence of a person has a cost; in the virtual world, existence is cheap. Since a player may not be “logged on” all the time, it’s hard to come up with fair rules for the cost of existence without penalizing either players who play a lot (your core audience) or players who can’t log on much (who are likely to leave if penalized for not being there all the time). If you require someone to work for a living, the casual players may not be able to compete, and may leave.

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