ALL POWER SUPPLIERS

What's going on in Kapilands?
This section is for all about the game itself.

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Guest

Post by Guest » 13.06.2007, 19:57

(read the one from knolls i think about thwe macdonald emplyer game its talks sort of aout this)
It does? :shock:

Guest

Post by Guest » 13.06.2007, 23:08

i do belive that once the contest is over the price will go back own, unfortunatly for me becaus i have calculated that i make $250,000 more every $0.01 the power goes up e.g.
25million power at
0.06= 1.5million
0.07= 1.75million
0.08= 2million
so on so on

Guest

Post by Guest » 14.06.2007, 08:20

1. Just to make it clear: if I invest in power plants - I don't want the power price to go down. I am profit-oriented player, not a market regulatory body :) I just wanted to show that at 0.08-0.09/kWh producing power becomes attractive at the current opportunity costs (profitability of other products), so the price most probably settle around this price level.


2. I also don't get this: "(read the one from knolls i think about thwe macdonald emplyer game its talks sort of aout this)". Some explanation/rephrasing could be helpful.

Guest

Post by Guest » 14.06.2007, 12:34

I think there is a necesary condition attached to what you say about the power price level. Most of the active players don't think in terms of opportunity costs and are therefor not applying this theory, if we only could find out the impact of those players who actually do this we could have a more accurate estimation on the price evolution. Another thing that also influences the price is the attraction (read profitability) of finished goods and their respective weight in power needs. So I think it's getting very complicated to make a solid prediction 8)

Guest

Post by Guest » 14.06.2007, 13:14

Knolls wrote:
(read the one from knolls i think about thwe macdonald emplyer game its talks sort of aout this)
It does? :shock:
/I also don't get this: "(read the one from knolls i think about thwe macdonald emplyer game its talks sort of aout this)". Some explanation/rephrasing could be helpful.


Not sure if its from you or not, but some guy (high forum status) posted this think on how they made a game for macdonald employers, it was like kapilands. And almost every single company in the game was complatly profit oriented, even if they know that in 150 years (game time) the market would crashed. SAme thing here

Guest

Post by Guest » 14.06.2007, 13:46

That was me. But I don't think the two situations are at all comparable. Markets are supposed to move by supply and demand until an equilibrium is reached. No one is doomed at .07 any more then they are at .11. On the other hand that experiment showed that the environment was treated as expendable since it's a shared resource with no personal accountability.

Guest

Post by Guest » 14.06.2007, 17:39

In case of low priced products (water and power) you can only change the price by 0,01. That means that prices 0,01-0,09 can be easily manipulated. If I buy for 0,08 and sell for 0,09 then after taking the 10% I still make a profit. This easily prevents lower prices. You just need someone with large amounts of money. You can even make profit on it.
Further increase of power prices will result on people switching to products which use less power or building their own power plants. But in the second case it's better to sell the power yourself. There is going to be a major change on the market as different products will become profitable. There is a second solution, that people build their own power plants.

Guest

Post by Guest » 14.06.2007, 22:39

Elder illustrated the threshold point perfectly. At the point that power plants become as profitable as other industries build power plants. Even if you are using the power for your other industries the savings made IS the profit. Otherwise buy power at current market rate.

Guest

Post by Guest » 14.06.2007, 23:19

I was a costumer, and the prices were getting to high, so I made my own PP, if the prices get to high, everyone will do the same, and all power industries will have a big disaster on theyr bank accounts... i've got 2 friends which have made the same as me.

i'ts true when is is sold, you get an higher profit, but are you sure it will be sold?

Guest

Post by Guest » 15.06.2007, 01:39

SSC Inc. wrote:Elder illustrated the threshold point perfectly. At the point that power plants become as profitable as other industries build power plants.
That

Guest

Post by Guest » 15.06.2007, 01:43

the only problem with that Rocky is the big companys already have 60 (or 100) buildings producing eg. gas. for thoes companys to start making power they would haft to sell a few of there factories , expand there power plants, and wait for there power to produce which means more time to make less products to make less money. building your own power plant when your small might work but when you a big company with more than 100million fixed assest i think thed rather buy power than produce it 8)

Con inc. your power supplyer

Guest

Post by Guest » 15.06.2007, 07:22

As already mentioned, big companies will never abandon their production to build power plants instead because of the profit rate and not because of shortage of spare slots...

Guest

Post by Guest » 15.06.2007, 13:49

As already mentioned really big companies have payback on their very high q wardobes, gas, TVs or whatever of 8 days and better and will never consider producing power unless price strikes some say 0.18/kWh. My numbers posted above applied to medium-sized companies (as my company for example) without inflated research levels. E.g. for me profitability power at 0.13 is comparable to my q4 wardrobes. But it would be still inferior if I had q15 research in wardrobes and I would be able to produce q7 wardobes. If I had q25 I would never consider producing power.

But I guess that was the intention of game creators that basic materials (as they do not require research) are covered by the beginners and medium companies. Other opportunity are stones, water or steel. The ROI on a mine-steel complex producing q0 steel is set in stone by the NPC price and acts as a reference point. My point is that ROI on power will converge to this level (or possibly slightly surpass it) implying power price of 0.08-0.09/kWh. Above this threshold all beginners should start produce power. This assumes that efficient market theory is right with the rational behaviour of market players (and this assumtion is false of course, even I produce some sugar and biscuits just for fun).

Of course if the demand of the biggies exceeds the production capacity of the beginners the price has the potential to rise, provided the biggies will have still better ROI on their products.

Guest

Post by Guest » 15.06.2007, 15:50

Sometimes, I am asking if you don't destroy your own business ... There is a virtual point for each of us, up to that point it is in our interest to build our own power plant in order be auto-suffissant.

A power-plant is very interesting : Low cost, low investment, high profit.

Up to 0,08 caps, it isn't in my interest to buy power (for my case). Virtually, my power plants sell the power at 0,06 caps / kWh

At that price my ROI is 125% for 30 days and the break even point is 24 days. You forget that there is some car dealers who need some power at cheap price to drop their price.

Be worry about your own is fine. However, for each increasing you lost clients; who like me have more interest to spend money in a power plant than to buy it.

SPB's CEO

Guest

Post by Guest » 23.07.2007, 13:51

i'm barely making anything on selling power now...people! dont flood the market with .08/.09
you are eating nutshells with that price
everyone act like monops and push up prices! woot!

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