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Inflation and Item Bidding in MMOs

Catalin Ichim

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This diagram demonstrates the interactions between users, currencies and collectables in shared-world games such as MMOs.

The primary metric for this diagram is the purple Register, "Avg Bid for Item", which estimates the market price of a rare item called "Legendary Item X". The price of the item is determined by how many users want the item, and how much gold players have. The more demand there is, and the more gold the average player has, the more players will be willing to pay for it.

The dual interaction between the increase in the supply of gold (i.e. inflation), and the increase in the supply of copies of Legendary Item X, results in an average bid that initially increases, then settles to zero as the item becomes over-abundant.

Tags

EconomyeconomicsGame Loopfeedback loopdropcurrencyresourceResource managementworld of warcraftsupplycirculating supplydemandcirculatingPre-MadesmonetisationGame Mechanicgame designgames
Edited more than 1 year ago
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