Externality

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This diagram models the economic dynamics and player interactions surrounding a world boss fight in an MMO (Massively Multiplayer Online) game. It examines how the number of players attacking a boss affects both the likelihood of defeating the boss and the distribution of loot among players, illustrating both positive and negative externalities. Positive externalities are represented by the increased chance of success as more players join the fight, calculated through a formula that exponentially increases the win rate with the number of players, capped at 100%. Negative externalities manifest when the loot per player decreases as more players participate, distributed according to a formula that divides total loot by the number of players involved.  

The diagram further quantifies these interactions through registers that calculate the average loot per player, highlighting the tipping point where the addition of more players leads to diminishing returns for each individual. This system underscores the strategic considerations players must weigh when joining a boss fight, balancing the benefits of an increased success rate against the potential reduction in individual rewards. This exploration of externalities in an MMO context reveals the complex interplay between player actions and game outcomes, providing a sandbox for understanding economic principles in a virtual setting.