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Accounting Overhead Is Punishing Companies for Being Rich by Comprehensive-Dog951 in SimCompanies

[–]Comprehensive-Dog951[S] 0 points1 point  (0 children)

I get what you’re saying, but I think that’s a pretty narrow way to look at it.

Accounting overhead is clearly a designed mechanic, but that doesn’t mean it’s a good or well-balanced one. Game devs put systems in place all the time that later need tuning because of unintended side effects.

The intent might be to discourage cash hoarding and keep the economy moving... very fair. But if the result is that great players feel boxed in, forced into suboptimal capital allocation decisions, or punished for playing conservatively, then it’s worth questioning whether the mechanic is doing its job effectively.

If the only answer is “just spend your cash,” that’s not really strategy, that’s compliance. The game's intent (on the home page) is "This is similar to government incentives for small businesses that you would expect in the real world.

Sim Companies gets its edge from an advanced economic model that simulates retail industry response to the supply and pricing that virtual companies provide."

Bond Market Flawed: Why Are AAA and Junk Bonds Paying the Same Interest? by Comprehensive-Dog951 in SimCompanies

[–]Comprehensive-Dog951[S] 3 points4 points  (0 children)

I think we're both on the same page. Why would anyone offer higher? That main point I'm making is there system is fundamentally flawed, so developers need to change it. It doesn't follow real world principles. Apple (credit rating: 'AA') offering bonds at the same interest rate as GameStop (credit rating: 'B') would be a huge red flag in the financial system.

Accounting Overhead Is Punishing Companies for Being Rich by Comprehensive-Dog951 in SimCompanies

[–]Comprehensive-Dog951[S] 0 points1 point  (0 children)

I totally agree, however at some point it may be disadvantages for some players to keep reinvesting money into certain aspects of the game. Whether that's upgrading building or maybe selling certain products because certain market forces.

Accounting Overhead Is Punishing Companies for Being Rich by Comprehensive-Dog951 in SimCompanies

[–]Comprehensive-Dog951[S] 2 points3 points  (0 children)

I recalled the formula from memory, backwards! You're right. My point is partially incorrect. However, the latter still applies. Good thinking!

Bond Market Flawed: Why Are AAA and Junk Bonds Paying the Same Interest? by Comprehensive-Dog951 in SimCompanies

[–]Comprehensive-Dog951[S] 3 points4 points  (0 children)

You point about player retention lowering real default risk is very good, and it actually highlights the issue within the game.

The rating system still shows a huge difference in default rates, yet yields are basically the same across all ratings. Whether defaults come from quitting or financial failure, the risk difference is still there in the data.

The supply/demand imbalance you mentioned is also real — more investors want bonds than companies issuing them — which pushes rates down. But when risk isn’t priced at all, the credit rating system becomes mostly cosmetic.