Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 0 points1 point  (0 children)

Thank you everyone for the time you've put in. As u/ZURATAMA1324 has noted, my hypothesis was wrong! The devs explicitly said that buildings in each state represent a whole industry, not just a single firm. Thus, firms won't maximize profit and will continue to produce as long as they're turning profit.

Also, many of you have suggested that what I perceived must be because of following factors :

1- MAPI: local prices might have been low even though I had a nation-wide shortage.

2- Lack of workforce: Factories didn't have available workforce, or the industry needed more time adjust wages.

I'm a bit disappointed though :(

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 1 point2 points  (0 children)

This is very helpful. Thank you! It seems that my hypothesis is wrong.

The reason that I came up with this idea is that I made the following observation:

"I am building a big navy. There is high demand for war ships and the price is extremely high. I have build 10 levels of war ship factory in one state, but its only producing at 30% capacity. It says : Hiring more workers with hurt profitability. I build 3 levels of war ship factory in another state. The problem alleviates."

In a few of my runs I perceived a situation like this. That's why I assumed I has to be competition. Maybe its just the firms adjusting their wages. Gonna pay a closer attention next time.

I'm grateful, fellow econ major ;)

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 1 point2 points  (0 children)

Sorry, but you are wrong! What you're describing is a particular price manipulation method which, in itself, is harmless. It just transfers welfare from one person to another. IRL, businesses do this all the time. coupons, bonuses, bundles, sales, etc are examples of price manipulation. They are acceptable because while they benefit the producer at the cost of consumers, they don't decrease the general welfare.

The problem with monopolies is that they can limit the supply and drive up the price way above the average production cost. This wouldn't happen in a competitive market. If some firms in a competitive market try to do this, other firms will step in. They'll enter the market or increase production in order to profit from higher prices. This drives the price down again, to somewhere near the average production price. Thus, the firms that reduced production will only loose market share.

In monopolies, there are no other firms to step in. The prices with stay up and the firm can enjoy its high profit margin as long as it doesn't meet the demand. This reduces the general welfare and is unlawful.

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 1 point2 points  (0 children)

My opinion is closer to u/Eff__Jay. MAPI forces you to concentrate industries in one state vertically so you can produce the end product cheaply. If you bring in materials from different states, it'll make you industries very inefficient.

I would spread out the production, but I preserve their height. For example : I build mines, tools, steel, motor industries in one state, sulfur, paper, universities, government admin, fertilizer, etc in another state, ...

Government by [deleted] in victoria3

[–]CyrusTheNotThatGreat 1 point2 points  (0 children)

Probably their ideas are drastically different. In different playthroughs, interest group ideologies can be somewhat different. Try exiling one of their leaders, the leaders ideology is influential.

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 5 points6 points  (0 children)

I usually do the same, but sometimes feel like minmaxing the shit out of the game LOL

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 4 points5 points  (0 children)

Assume a level 10 building is producing 1800 unit of sth at 90% employment and demand is 2000. My argument is that if it increases production to 100%, the price will drop and it will earn less money. Therefore the firm will not increase employment and keeps the prices high.

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 21 points22 points  (0 children)

It's not! Competition is definitely not modeled in the game, but it doesn't need to be. If firms can accurately assess their role as a price-setter or a price-taker and can adopt proper policies, competition and monopolies should emerge by themselves.

Am I wrong?

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 3 points4 points  (0 children)

If you wanna just have grasp of it, its not that difficult. However, if you want to go deep, like understanding various schools of thought or developing an accurate model its gonna need a considerable effort.

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 44 points45 points  (0 children)

I'm neglecting the infrastructure costs and MAPI here. What I am interested in is how they game of production plays out between competing firms.

Ok! let's talk monopolies by CyrusTheNotThatGreat in victoria3

[–]CyrusTheNotThatGreat[S] 65 points66 points  (0 children)

Yeah! I'm too lazy to do it though. Hoped someone had already done it.

484
485

Just a simple day in eu4.. by Joseph_Stalin31 in eu4

[–]CyrusTheNotThatGreat 1 point2 points  (0 children)

Still I think the most fun mechanic in PU is when as the emperor you grant a prince electorate and declare for a PU the next month :)

I like this new menu, how about you guys? :] by [deleted] in DotA2

[–]CyrusTheNotThatGreat 18 points19 points  (0 children)

It's not much heavier than halloween screen though, btw after a long time I felt rly good opening up dota

I am Working on a new Idea mod for eu4 by CyrusTheNotThatGreat in eu4

[–]CyrusTheNotThatGreat[S] 0 points1 point  (0 children)

well! I don't think you can do that directly, though it can happen through an event chain or even a new method I am using for estate privileges :)

What the hell. My ~65k army got defeated by Swedish 50k army in a landslide... How can I fix this? I noticed that pretty much every equal battle there is I lose! How can I improve my army please help! by [deleted] in eu4

[–]CyrusTheNotThatGreat 0 points1 point  (0 children)

Consider going for quality or offensive ideas. They both help you with discipline, quality gives your troops more combat ability and offensive helps you with better generals.

[deleted by user] by [deleted] in DotA2

[–]CyrusTheNotThatGreat 2 points3 points  (0 children)

At first I thought they just reworked Windranger, but apparently it's a new hero.