Second Life Forums Archive - Ummm am I just economicsdisadvantaged ?

Mhaijik Guillaume

Chadeaux Vamp

Join date: 18 Jun 2004

Posts: 620

07-15-2005 13:52

From this thread

If prices are dropping is it because we do not have money and people can not buy what they can not afford and people can not sell at high prices because people are poor ?

So lowering dividends and stipends will help this ?

Not that I want them raised or lowered - I am just confused by the logic....

puts on my fireproof black jeans and cami....

and yes, I like run on sentences, spaces and dots...

_____________________

Mhaijik Things Pheosia my shoppe....
Mhaijik Things Idiosyncratic Blog my blog....

Jamie Bergman

SL's Largest Distributor

Join date: 17 Feb 2005

Posts: 1,752

07-15-2005 14:08

A good start. But its probably more likely that the L$ is becoming devalued because there is TOO much money in the economy.

Therefore, people sell more than the market can absorb on GOM, driving the price down. Also, this instability leads people to be less willing to invest and therefore tier up.

blaze Spinnaker

1/2 Serious

Join date: 12 Aug 2004

Posts: 5,898

07-15-2005 14:17

Influx of new users has devaluaed the currency due to a certain degree of inflation. It'll settle once they're out of money and participating in the economy!

_____________________

Taken from The last paragraph on pg. 16 of Cory Ondrejka's paper "Changing Realities: User Creation, Communication, and Innovation in Digital Worlds :

"User-created content takes the idea of leveraging player opinions a step further by allowing them to effectively prototype new ideas and features. Developers can then measure which new concepts most improve the products and incorporate them into the game in future patches."

Jellin Pico

Grumpy Oldbie

Join date: 3 Aug 2003

Posts: 1,037

07-15-2005 14:47

From: Jamie Bergman

A good start. But its probably more likely that the L$ is becoming devalued because there is TOO much money in the economy.

Therefore, people sell more than the market can absorb on GOM, driving the price down. Also, this instability leads people to be less willing to invest and therefore tier up.

Only if 'tiering up' is done for the express purpose of turning around and selling it off for a profit. If, on the other hand, you decide to tier up to build a store, or just cause you want more prims so you can have more stuff rezzed, this price dropping is a good thing.

So yes, I agree, is SL is nothing but an investment opportunity then what's going on now is bad. If however, you just want to have a big have a big house/space ship/castle/etc on a big chunck of land and be able to buy a wad of $L without breaking your bank, then it's all cake.

Depends on how you look at it.

_____________________

It's Official!

From: Trinity Serpentine

Jellin, you are soooooo FIC! Fabulous, Intelligent and Cute

Buster Peel

Spat the dummy.

Join date: 7 Feb 2005

Posts: 1,242

07-15-2005 15:13

When managing an economy there is a risk of over correcting. Even when everything looks like it is spinning wildly out of control, even subtle tweaks can cause whipsaws. Overcorrect, and the L$ will whip back the other way, which it may do anyway all on its own.

Don't fix it unless it really is broken.

Wags Manimal

Registered User

Join date: 28 Jan 2005

Posts: 4

07-15-2005 15:41

Lowering the stipince and dividend would hurt those who love to be in the game but can't afford the Premium account. if they can't afford the premium account they problably can not afford to go on and just buy Lindens Dollars from one of the vendors.

I hate to say it but one of the reasons for the land going down is because some folks are getting tired of the updates causing teleport problems. I know of 5 friends who have premium accounts who have either sold their land or have lowered their tiers because they can't get on or enjoy the game because they can not get anywhere in SL because of the Teleport problems.

If I know 5 who have done this how many more out there are there?? and this WILL cause the price of land to go down if everyone is starting to flood the market with land because they are unhappy with the service they are getting.

I'm not trying to point fingers at anyone....just stating a fact that I know is happening out there. Folks are becoming unhappy with always having problems getting around in a game that is supposed to be fun. They pay money for it and when they have problems enjoying what their money is buying them they cut back and this caused problems all around.

Just my 2 cents worth I guess. I enjoy SL and love to be on here. It's a great time and most everyone is friendly and kind. Sure there are some jerks out there but they are out there in 1st life too. *laughs*

Wags Manimal

Ummm am I just economicsdisadvantaged ?
Mhaijik Guillaume Chadeaux Vamp Join date: 18 Jun 2004 Posts: 620	07-15-2005 13:52 From this thread If prices are dropping is it because we do not have money and people can not buy what they can not afford and people can not sell at high prices because people are poor ? So lowering dividends and stipends will help this ? Not that I want them raised or lowered - I am just confused by the logic.... puts on my fireproof black jeans and cami.... and yes, I like run on sentences, spaces and dots... _____________________ Mhaijik Things Pheosia my shoppe.... Mhaijik Things Idiosyncratic Blog my blog....
Jamie Bergman SL's Largest Distributor Join date: 17 Feb 2005 Posts: 1,752	07-15-2005 14:08 A good start. But its probably more likely that the L$ is becoming devalued because there is TOO much money in the economy. Therefore, people sell more than the market can absorb on GOM, driving the price down. Also, this instability leads people to be less willing to invest and therefore tier up.
blaze Spinnaker 1/2 Serious Join date: 12 Aug 2004 Posts: 5,898	07-15-2005 14:17 Influx of new users has devaluaed the currency due to a certain degree of inflation. It'll settle once they're out of money and participating in the economy! _____________________ Taken from The last paragraph on pg. 16 of Cory Ondrejka's paper "Changing Realities: User Creation, Communication, and Innovation in Digital Worlds : "User-created content takes the idea of leveraging player opinions a step further by allowing them to effectively prototype new ideas and features. Developers can then measure which new concepts most improve the products and incorporate them into the game in future patches."
Jellin Pico Grumpy Oldbie Join date: 3 Aug 2003 Posts: 1,037	07-15-2005 14:47 From: Jamie Bergman A good start. But its probably more likely that the L$ is becoming devalued because there is TOO much money in the economy. Therefore, people sell more than the market can absorb on GOM, driving the price down. Also, this instability leads people to be less willing to invest and therefore tier up. Only if 'tiering up' is done for the express purpose of turning around and selling it off for a profit. If, on the other hand, you decide to tier up to build a store, or just cause you want more prims so you can have more stuff rezzed, this price dropping is a good thing. So yes, I agree, is SL is nothing but an investment opportunity then what's going on now is bad. If however, you just want to have a big have a big house/space ship/castle/etc on a big chunck of land and be able to buy a wad of $L without breaking your bank, then it's all cake. Depends on how you look at it. _____________________ It's Official! From: Trinity Serpentine Jellin, you are soooooo FIC! Fabulous, Intelligent and Cute
Buster Peel Spat the dummy. Join date: 7 Feb 2005 Posts: 1,242	07-15-2005 15:13 When managing an economy there is a risk of over correcting. Even when everything looks like it is spinning wildly out of control, even subtle tweaks can cause whipsaws. Overcorrect, and the L$ will whip back the other way, which it may do anyway all on its own. Don't fix it unless it really is broken.
Wags Manimal Registered User Join date: 28 Jan 2005 Posts: 4	07-15-2005 15:41 Lowering the stipince and dividend would hurt those who love to be in the game but can't afford the Premium account. if they can't afford the premium account they problably can not afford to go on and just buy Lindens Dollars from one of the vendors. I hate to say it but one of the reasons for the land going down is because some folks are getting tired of the updates causing teleport problems. I know of 5 friends who have premium accounts who have either sold their land or have lowered their tiers because they can't get on or enjoy the game because they can not get anywhere in SL because of the Teleport problems. If I know 5 who have done this how many more out there are there?? and this WILL cause the price of land to go down if everyone is starting to flood the market with land because they are unhappy with the service they are getting. I'm not trying to point fingers at anyone....just stating a fact that I know is happening out there. Folks are becoming unhappy with always having problems getting around in a game that is supposed to be fun. They pay money for it and when they have problems enjoying what their money is buying them they cut back and this caused problems all around. Just my 2 cents worth I guess. I enjoy SL and love to be on here. It's a great time and most everyone is friendly and kind. Sure there are some jerks out there but they are out there in 1st life too. laughs Wags Manimal

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Ummm am I just economicsdisadvantaged ?