Archive

Posts Tagged ‘Supply’

The Brick-Wood Paradox

22/05/2011 5 comments

When I first started letting people see some of the research I had done (by showing friends and posting here mainly), it was received with a lot of encouragement, and some follow-up questions, the most prominent of which I have dubbed the “Brick-Wood Paradox”. As quoted from a commenter:

Why [are] brick and wood so different in their value? They are used for the same things, they should be similar.

This is a tricky question. It’s a great observation – one that I missed in my first analysis. Brick and wood are used together in building roads and in building settlements, and neither are used for anything else. As demand for roads and/or settlements changes, the demands for brick and wood should change together, giving them the same “price” or value. At least, that is the intuitive comment made by many. My analysis holds to wildly different values for brick and wood. I believe that my analysis is not completely wrong (I’m not going to claim that it is the “God’s Word” of Settler’s strategy, though). These two facts led me to investigate this paradox.

@DevelopingCatan

The first observation (and most elementary – other people have made it since) is that the difference in value must come from the difference in number of tiles. There is no difference between wood and brick in their use, so the difference in value must come from their only difference in the game. This scared me at first. If the problem is that there is a difference between number of tiles, did I not equalize the resources correctly, independent of how many tiles there were? If there was any disparity between them, wouldn’t supply/demand say that the lesser available one is worth more? Is my analysis of ore wrong (since it is the other resource with only 3 tiles)? I hope not (and I don’t think it is). Read more…

Trading – People, Ports, or Production?

29/11/2010 1 comment

Settlers has a lot of trading in it. What’s the best way to do it? I’ve played with people who swear that it’s more advantageous to not trade with anyone until you have 5 points(relying on their own production), and I’ve played with people who only ever used the set rates of 4:1 or the 3:1/2:1 ports to trade.

From an economics standpoint, it is not advantageous to cut yourself off from trading with other players. The main reasoning that I have heard to discourage trading with opponents is the fact that you are directly giving an opponent a resource that he/she deems valuable. Why not keep it for yourself and not help them? The fact is that whether you participate in the trading or not, there is a market available to trade resources at a changing price, and your opponents will participate in it whether you do or not. In fact, the maximum participation in the market will give the most stability and fairness to the pricing of each resources. My advice is then to participate in the trading between players, but with the correct knowledge and foresight. A beneficial trade is one where each player is receiving resources that help him/her the same as the other. Trades need to be mutually beneficial and to the same degree of benefit. Read more…

Manipulating Market Price

21/10/2010 7 comments

As of now, I’ve looked at a trend in development strategy that I’ve seen, and now I’m looking at pricing. There’s not much strategy here (or at least anything past a beginner/intermediate level), and you might be a little annoyed – isn’t this supposed to be a blog outlining the best strategy for Settlers? We’re getting there. Don’t worry.

As I said last time, value is determined by the market. For some, this is a flashback to any introductory economics class taken previously. For the rest of you, here’s the rundown: when you graph the supply curve of a product and the demand curve of that same product on the same axes, we can find the market price (or equilibrium) by where they cross. If the demand goes up (by a shift of the demand curve to the right), the equilibrium price will move up. If the supply goes up (by a shift of the supply curve to the right) the equilibrium price will go down.

So what does this mean for Settlers? Read more…

%d bloggers like this: