Market simulation

After about ten attempts in as many years, I think I’ve finally cracked market simulation.

Tracking supply and demand in order to adjust prices does not work unless you add an artificial dampening mechanism.  Victoria 2, for example, limits the maximum divergence of a commodity from it’s “base” price.

And there isn’t just one price for a particular item; a loaf of bread in the morning is worth more than the same loaf in the afternoon.  Buyers have different resources available; supermarkets use mechanisms like coupons to charge different prices for the same product.

In the real world, prices are only indirectly related to supply and demand.  A better model is haggling, or negotiation (as it’s called for respectability).


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