Is the price of a good on the world market affected by the supply and demand of that good?

[Pashahlis]

Simple question. Is the price of a good on the world market affected by the supply and demand of that good?

So for instance: I produce more consumer goods and thus sell more excess consumer goods on the world market. So demand stays the same, but supply increases. Realistically, the price of consumer goods on the world market should decrease. Is that modelled ingame? I am aware that world market price is influenced by many things, with much of that being outside of the players control, but I am specifically only asking about whether supply and demand of goods on the world market influence their price.

[evildari]

Simple answer: No
viewtopic.php?f=72&t=28177
you may see occasionally a change in market price if you do a large bulk buy/sell of goods. Thats it.

[Pashahlis]

Well, the dev says at the end:

> As per the other thread - The engine does not work well with only one region. It's not designed to work like that and we don't plan to allocate resources to that. You've won, you're the Supreme Ruler.

So I would be interested whether that holds true for a normal game with many different regions, still. I will await further replies to this topic by other people.

[Rosalis]

Yes price depends on production and demand and if the resource is produced in a low or high gdp/c region. It isnt 100% accurate since alot of trade goes thru the hidden region. In theory it should be better to have low gdp/c regions as raw resource producers then the middle ones as good producers and the rich as consumers.

[Pashahlis]

No, I am not asking about your local production price. I am aware that it is affected by your GDP/c and other factors.

I am asking about the world market price, specifically.

[Rosalis]

Me too, if you take over the rubber as US every finished good will rise in price for everyone in the world. Ofcourse this can have a big impact on demand since people cant buy as much.

[Pashahlis]

Oh wait I think I get now what you mean?

You are saying that the local production price affects the world market price, too. As an example:

If the USA owns all the rubber in the world, the world market price goes up as the USAs production cost is naturally very high due to its very high GDP. Likewise, if all the worlds rubber were to be owned by Somalia, then the rubber price would go down as Somalia has very low production cost as it has a very low GDP.

So, to sum it up, is it generally correct to say that, ignoring all the other hidden math that goes on behind the scenes, the world market price is an average of the worldwide production cost, demand and supply of a good/resource?

[evildari]

...
If the USA owns all the rubber in the world, the world market price goes up as the USAs production cost is naturally very high due to its very high GDP. Likewise, if all the worlds rubber were to be owned by Somalia, then the rubber price would go down as Somalia has very low production cost as it has a very low GDP.

my linked example proved it that the game does not work in this way
there was no correlation of the world market price to the production costs

[Pashahlis]

Thats because you owned the entire world as the developer explained. Of course things will be funky then.

[Rosalis]

So, to sum it up, is it generally correct to say that, ignoring all the other hidden math that goes on behind the scenes, the world market price is an average of the worldwide production cost, demand and supply of a good/resource?

I think thats it for the most part.

The big difference compared to SR2020 is population of the loyal regions. In SRU population per hex gdp/c seems to be stored, locked i dont know how to explain, where in SR2020 population grow more towards the gdp/c region of the occupier, which is usually higher then before. I think that can explain the weird outcome evildari experienced. In his game still most of his population was poor (india/China) prolly reflected by the hidden region.

For example you could take over India and China as US 2020, your demand doesnt increase like you would expect with your total population but other producers like Germany, UK, France, Japan, South korea, will do financially very good since the average world production price increased greatly and actually improved their gdp/c. Its more when China conquer US the game becomes really freaky and detrimental, where in SR2020 its fine since if you take over high gdp/c regions that population will increase your gdp/c more.

[Pashahlis]

> The big difference compared to SR2020 is population of the loyal regions. In SRU population per hex gdp/c seems to be stored, locked i dont know how to explain, where in SR2020 population grow more towards the gdp/c region of the occupier, which is usually higher then before. I think that can explain the weird outcome evildari experienced. In his game still most of his population was poor (india/China) prolly reflected by the hidden region.

> For example you could take over India and China as US 2020, your demand doesnt increase like you would expect with your total population but other producers like Germany, UK, France, Japan, South korea, will do financially very good since the average world production price increased greatly and actually improved their gdp/c. Its more when China conquer US the game becomes really freaky and detrimental, where in SR2020 its fine since if you take over high gdp/c regions that population will increase your gdp/c more.

Uhm, what? I am not sure I get what you are saying.

[Rosalis]

Well maybe someone can explain who is better in English then me, but this goes very deep. Basicly BG changed economic opinion during the series that rich stay rich and poor stay poor. I suspect the ammount of complaints where US would simply bankrupt itself in SR2020 as the main factor, but yeah i dont know for sure. The way units improve gdp/c is fair, but when US build hundreds of 5 billion patrol planes and hundreds of the most modern strategic bombers. then things get a bit weird, maybe you can imagine.

You see everyone talk about expences like its the main descision maker, but what if those expences actually make up your gdp/c? You can scrap all the hydro and stuff, but is it really better? No one knows except devs who still claim its better then coal, experience playing multiple regions in 1 game will tell you alot. Or test like i described. It should not take that much time taking over India and China with the b2-spirit. Its basicly click and move up. The other way is alot harder, without cheats atleast, but you would get the same effect with Russia, but the impact will be less. If you do as low gdp/c region, world demand will drop alot and eventually your not that much better of, unless you want to crash the world market. At that point your better of colonising US after a few months, so that market will grow back to their gpp/c.

BTW i use China as an example of a poor gdp/c region, because it is in game with the biggest population, im not talking about rl.

[evildari]

Thats because you owned the entire world as the developer explained. Of course things will be funky then.

the devs did not explain it - they used this lame commonplace to kill any consideration of the issue - which is now back again (as treasury and resource production adding issues)

Why should the formula for determining the world market prices be another one depending if there is only one last region alive?
There is no reason that things should be funky.
The issue were just masked since everyone thought "must be the rest of the worlds regions causing that issue".

Also the theory from Rosalis about differences caused by regions with higher / lower gdpc:
in my linked issue - i used my mars mod which is a tournament style setup with 25 regions starting at same gdpc and population and quit comparable infrastructure.
While conquering the planet there was not a high difference in gdpc of the regions - vanilla sru differences in gdpc are much more extreme in comparison.
This part of the game is another random number black box.

[Rosalis]

Pls dont call this theory the 'Rosalis theory' I dont want anything to do with that opinion.

But yeah if everyone got same gdp/c and you improve your market share in the world, it would only be logic if your gdp/c grows with it.

Its Supreme Ruler making the descisions, not game mechanics or corrupt goverments.