Re: Economic Model for Businesses

[Joel Gunderson <belgarat@expert.cc.purdue.edu>]

Good lord...do I feel retarded.  I'll study this and get back to you in a
week.

Foo ;)


On Wed, 30 Sep 1998, Preston Wiley wrote:

> I have completed my first draft of the economic model. It is pretty
> complex because I tried to include alot of things in it. It currently
> doesn't have any random elements, which kind of disappoints me, but I've
> tested on a few businesses and it seems to work pretty good. Tell me what
> you think. It is based off of a simple economic equation for Profits and I
> went for there.
> 
> Economics for AQ businesses
> ----------------------------
> 
> Using this method, one person should be choosen as the Business Cooridinator.
> This person will be responsible for keeping track of the Player Businesses and
> non-player business and informing the Players how much profits they have 
> earned.
> 
> Let:
> 
> 	C = Selling Price of Product
> 		(Determined by the AQ Player)
> 	D = Demand of Product
> 		(Equation Below)
> 	P = Production Cost of Product
> 		(Cost of Materials to Produce Product)
> 	S = Supply of Product
> 		(Determine by AQ Player up to Maximum)
> 	A = Advertisment Cost Per Month
> 		(Determined by AQ Player)
> 	W = Cost of Workers per Month
> 		(Equation Below)
> 	M = Machine & Tool Maintence Monthly Cost
> 		(Total Machine Cost / 20)
> 	R = Cost of Monthly Rental of Items (Buildings, etc.)
> 
> Profits = CD - SP - A - W - M - R
> 
> Demand
> ------
> 
> Let:
> 	A = Ad Variable
> 		(Starts at .005, add .0025 per 125sp spent on ads per month)
> 		(Always add .0025 * Q per month)
> 	C = Competition Variable
> 		(1 + 1 per local competitor + .5 per nonlocal competitor)
> 	F = Equilibrium Price
> 		(Price in book or GM Picks it) NOT KNOWN BY PLAYER
> 	I = Demand Population
> 		(People who might want to buy this product)
> 	P = Product Type
> 		(.75[Necessity] - .25[Luxary])
> 	Q = Quality of Product
> 		(0 is normal, < 0 low quality, > 0 high quality)
> 	S = Supply of Product
> 		(As described above)
> 
> Demand = AIPF
> 	 ----
> 	  CS
> 
> Cost of Workers
> ---------------
> 
> Let:
> 	S = Skill Rank of Skill Required to Produce Product
> 		(Minimum of 7 to be useful)
> 	B = Base cost of Skill used for S
> 		(Not the 3 times version, the BASE cost)
> 
> Cost = S * (B/10) * 4    per worker per month
> 
> If you're production requires only non-skilled workers, the cost is
> 60 SP per worker per month.
> 
> Max Supply
> ----------
> 
> Let:
> 	V = Item Variable
> 		(Amount Produced by 20 workers in 1 month)
> 	W = Number of Workers
> 		(Determined by AQ Player)
> 	T = Tech Level
> 		(Normally 1, low quality machines decreases...)
> 	
> 
> Max Supply =  TVW
> 	     -----
> 	       20
> 
> 
> 
>