Original Post
Okay so I'm an economics major and what has really interested me about MMOs is, not surprisingly, the economy. As such I have come up with an idea for an economic system of an MMO. Because the economic system of an MMO is so intricately tied to the design of the rest of the game, I have non-economic ideas fleshed out as well.
I am simply looking for some feedback on these ideas and whether they would work. Please be mindful of the fact that I am aware that I will not be making this MMO. This is more of an academic/creative exercise that I think is interesting and wish would be made, not a hardcore idea that I believe I am going to immediately work on.
THE IDEA
Territory-based PVP
The crux of the idea is based on the following mechanism. The MMO would contain 3-5 nations. Beyond the normal monster-killing quests and such, a major aspect of the game would be each nation fighting for control of a lot of different "territories" (there would be somewhere between 25 and 100 of these territories). Gaining control of a territory would likely involve something like taking a keep in an important part of the territory. Territories could have different conditions for takeover instead; it doesn't matter though.
The main point is that each territory owned by a nation provides the players of that nation with a resource and money stream at given time intervals. The resources will be the means with which all items are crafted (more on that later). The type of resource provided will depend on the territory, thus making it important for a nation to have a diverse territory set. You wouldn't want to be left without a territory that would provide you with the resource necessary to make health potions for instance.
Resource System
A money stream is fairly straightforward. Players of a nation would get more money over time the more territories their nation held. The only issue with that is whether to give money to players who haven't logged in recently. My thought was that money would be given every 24 hours. If you've logged in and played during that time, then you get the money. If you haven't logged in, then your money goes in the government's coffers (more on that later). This would encourage people to play frequently, but still provide their nation with money if they don't.
Anyways, the more complicated issue is the resource system. Every territory owned will provide a stream of resources every day. Unlike money, these resources will not go to the players immediately. Instead, they will go to various warehouses/vendors/etc around the nation, and can be bought by the players for set prices. So for instance, holding Territory A might provide you with 1000 Iron and 500 Wood a day. This 1000 Iron and 500 Wood will appear and be sold in certain locations around the nation, where maybe Iron will be sold for 10 gold a unit and Wood for 15 gold a unit.
It will only be with these resources that items can be crafted. Thus, a nation that holds more territory will have access to more resources and thus also better/more weapons, armor, potions, etc etc.
The Role of NPC Shops
Mostly, players who decide to craft will simply buy resources their nation has earned, use those resources to craft items, and then sell those items to other players for a far greater price than they paid for the resources. The only problem with this comes if an item is so easy to craft that there is truly a free market for the good (ie. the price is driven down to a level at which almost no profit is gained from crafting and selling). We don't want this, because we want it to be profitable to craft.
Thus we create the institution of NPC shops. NPC shops will not have any of their own goods generated. Rather they will simply buy unused items crafted by players at a set price and sell them. So let me give an example. Let's say the resources needed to make a dagger cost 30 gold. Since it is so cheap/easy to procure these resources, the going market price for a dagger might be only 30-32 gold. This makes it virtually useless to craft and sell, especially for a new player who is trying it out (since they're new they wont have much money and will have to make low profit items like that). We don't want this, so the NPC shops may be programmed to buy a crafted dagger for 40 gold. This will ensure crafters get profit, by making shops always buy items for a reasonable amount more than the resource cost of the item.
It is likely that only low priced goods will be affected by this policy of NPC shops though. The number of suppliers of low priced goods is high enough that it is basically a free market, pushing profit towards zero. On the other hand, if we are talking about a crafted +10 Greatsword with 50% Stun Chance, then there will be very few people able to craft it (in fact it will likely take a group of people; more on that later). Thus each person who does craft it will have some level of monopolistic control over the price, driving up prices well above what an NPC shop would buy it for.
Taxation and Intra-Nation Conflict
In any case, the other element I would introduce would be intra-nation conflict. Each nation would have a "King." This "King" would be the head of a guild that controls the nation. A guild could wrestle control from another guild through an organized attack on the King's stronghold, which would be possible every week (I basically stole this stronghold attack mechanism from Aika Online, so look it up for more info).
The power of the King on economic matters would actually be rather high through the mechanism of "taxation." The King doesn't actually tax the players, though. Rather he will tax the people who live in the territories he controls. For these purposes, the players are in the King's army. Thus, the more the King taxes, the more gold the government gets from the people, and therefore the great the money stream given to the army (the players). However, as any economist will tell you, high taxation lowers the incentive to work. Thus, the trade off with this is that high taxation leads to lower output by the people in the territories. This translates to less resources.
Therefore, taxation provides a trade off between the money stream and resource stream which the King must control. Too much taxation and there won't be enough resources to craft great items for the players in the nation. Too little taxation and the players won't have the money to buy the resources/items that they need. Of course, there will probably be disagreements over taxation policy, making attempted overthrows of the government have an actual point.
Mercenaries and Assassins
As I said before, I was thinking that players who hadn't logged in for a while wouldn't get their share of the money stream. Instead their money would go to the government. It is possible the King could be given the power to allocate some of the money stream away from players and towards government coffers as well.
In any case, I think there could be some cool ways of using this money. The King could use money to pay Mercenaries (who could be either players from other nations or NPCs I suppose) who could be bought to fight in battles against other nations or against those trying to overthrow the King.
This money could also facilitate an assassin system. I was thinking that, like Aika Online, the King and his guild would be given pretty large stat bonuses. Furthermore, the territories themselves might provide some passive stat bonuses to all players in the nation as well, or there could be a separate system such as the Relic system in Aika, where control of certain areas with "relics" provides the nation with stat bonuses. Either way, I was thinking that Kings could use their government money to buy an assassin (other players who agree to it) to kill another King within a certain timeframe. If the King is assassinated (not just killed on a quest or something), then his guild and the nation as a whole loses their stat bonuses for a certain period, making it both easier to take their territory, but also easier to overthrow them. They could also assassinate rival guild leaders, stopping them from attempting a coup for a certain time period etc etc.
Trade
Anyways, the last part was a bit off the economic topic, but is relevant in that it would be part of the economic powers of a nation's king. Trade between nations would also be an important part of the King's powers. As I said before, each territory would provide different resource streams. Thus, a nation could be left without a territory that would give them a resource they really need. As such, it would be possible for Kings to negotiate nation-to-nation trade agreements. If Nation A really needed Iron from Nation B, and Nation B really needed Wood from Nation A, then they could create an agreement where Nation A provides 10,000 Iron a day to Nation B, and Nation B provides 8,000 Wood a day to Nation A.
Furthermore, if two nations want to be allied, they could even provide completely free trade between nations, meaning players could buy resources/items from nations that aren't their own. The King could also put tariffs on goods from other nations, making them more expensive (and thus only worth buying if you really can't get it at home). The King would have to watch out with trade though, because a trade deficit would basically mean gold is flowing out of their nation and to the other nation.
Crafting Guilds
I alluded to this earlier when I said that an item might need to be created by a group of players. In order to encourage new players crafting, there would have to be a limit on the amount of resources a player could buy in a day. This would stop super rich players from quickly buying up all the resources every day, stopping new players from getting any.
However, the result of this would be that one player has a limited crafting potential when it comes to super expensive items. This would require the creation of crafting guilds. Let me give an example. Let's say there is a limit of buying 1000 Iron a day. Crafting a 'Super Sword' might take 1,000,000 Iron. Thus, a single crafter would need, at the least, 1000 days (almost 3 years) in order to make that object. Thus, the player would probably never make it. However, the player could make a crafting guild of 20 players. If each of them bought the max Iron every day, it would only take 50 days to acquire the resources to make the 'Super Sword.' Thus it could be made and sold at massive profit. This encourages the creation of crafting guilds.
Inflation
Rampant inflation is present in many MMOs. Farming of resources and players doing quests provides more money in the economy constantly, inflating prices. Inflation isn't the same problem in game as it is in real life. In real life, inflation discourages savings and other things that are not relevant in game. However, it still makes a game economy seem silly if its constantly inflating hugely. The other big problem is it discourages players from coming back to the game. So we don't want massive inflation.
How would this game deal with that? You are probably thinking about how there's a constant flow of money each day, thus creating huge inflation. However, my system provides a huge money sink in the form of buying resources. Every time a player buys a resources, he pays an NPC, and that money leaves the economy. Thus, the balance of resource and money streams determines inflation. For instance, let's say there are 100 players in a nation and taxes are set by the King such that each player gets 10 gold a day. 1000 gold is entering the nation each day. However, at the same time, the nation is also getting a resource stream of 100 Iron a day, with Iron costing 10 gold per unit. Assuming all of that Iron is bought, then 1000 gold is leaving the nation each day as well. Thus, the money supply stays constant.
Through this mechanism, the King of a nation actually can use the taxation system as a means of dictating the monetary policy of his nation much like the Fed does in real life. Effectively, the King can control the inflation/deflation rate in the economy, which could have some large implications.
Dealing with Certain Problems
- I said that NPC shops will always buy goods for a certain price. Well that won't always be true. If they did, players could farm them for money constantly, and that isn't realistic behavior. It would also create more inflation (which you don't need in an MMO) by having the NPC shops constantly giving money to people and not selling the item back to other players (thus getting money back out). Thus there will be some kind of limit on the number of a given item that a shop will hold at once. Thus, they might not hold more than 1000 daggers at once, for instance. Therefore, if no one buys daggers, then someone can't keep farming crafted daggers.
- You don't want one nation to dominate. One of the ways I would try to stop a nation from dominating is through creating a system where they can get overstretched. Each territory that is controlled carries with it the fact that monsters will attack given areas in that territory dynamically. If the monsters are not destroyed each time they attack, then their attack on the territory will be "successful" and the money/resource stream of that territory will be lessened for a certain time period. If one nation controls a huge amount of territories, these attacks will get overwhelming, and they will lose their advantage from having all that territory.
____
I know that was long, but what do people think?
I am simply looking for some feedback on these ideas and whether they would work. Please be mindful of the fact that I am aware that I will not be making this MMO. This is more of an academic/creative exercise that I think is interesting and wish would be made, not a hardcore idea that I believe I am going to immediately work on.
THE IDEA
Territory-based PVP
The crux of the idea is based on the following mechanism. The MMO would contain 3-5 nations. Beyond the normal monster-killing quests and such, a major aspect of the game would be each nation fighting for control of a lot of different "territories" (there would be somewhere between 25 and 100 of these territories). Gaining control of a territory would likely involve something like taking a keep in an important part of the territory. Territories could have different conditions for takeover instead; it doesn't matter though.
The main point is that each territory owned by a nation provides the players of that nation with a resource and money stream at given time intervals. The resources will be the means with which all items are crafted (more on that later). The type of resource provided will depend on the territory, thus making it important for a nation to have a diverse territory set. You wouldn't want to be left without a territory that would provide you with the resource necessary to make health potions for instance.
Resource System
A money stream is fairly straightforward. Players of a nation would get more money over time the more territories their nation held. The only issue with that is whether to give money to players who haven't logged in recently. My thought was that money would be given every 24 hours. If you've logged in and played during that time, then you get the money. If you haven't logged in, then your money goes in the government's coffers (more on that later). This would encourage people to play frequently, but still provide their nation with money if they don't.
Anyways, the more complicated issue is the resource system. Every territory owned will provide a stream of resources every day. Unlike money, these resources will not go to the players immediately. Instead, they will go to various warehouses/vendors/etc around the nation, and can be bought by the players for set prices. So for instance, holding Territory A might provide you with 1000 Iron and 500 Wood a day. This 1000 Iron and 500 Wood will appear and be sold in certain locations around the nation, where maybe Iron will be sold for 10 gold a unit and Wood for 15 gold a unit.
It will only be with these resources that items can be crafted. Thus, a nation that holds more territory will have access to more resources and thus also better/more weapons, armor, potions, etc etc.
The Role of NPC Shops
Mostly, players who decide to craft will simply buy resources their nation has earned, use those resources to craft items, and then sell those items to other players for a far greater price than they paid for the resources. The only problem with this comes if an item is so easy to craft that there is truly a free market for the good (ie. the price is driven down to a level at which almost no profit is gained from crafting and selling). We don't want this, because we want it to be profitable to craft.
Thus we create the institution of NPC shops. NPC shops will not have any of their own goods generated. Rather they will simply buy unused items crafted by players at a set price and sell them. So let me give an example. Let's say the resources needed to make a dagger cost 30 gold. Since it is so cheap/easy to procure these resources, the going market price for a dagger might be only 30-32 gold. This makes it virtually useless to craft and sell, especially for a new player who is trying it out (since they're new they wont have much money and will have to make low profit items like that). We don't want this, so the NPC shops may be programmed to buy a crafted dagger for 40 gold. This will ensure crafters get profit, by making shops always buy items for a reasonable amount more than the resource cost of the item.
It is likely that only low priced goods will be affected by this policy of NPC shops though. The number of suppliers of low priced goods is high enough that it is basically a free market, pushing profit towards zero. On the other hand, if we are talking about a crafted +10 Greatsword with 50% Stun Chance, then there will be very few people able to craft it (in fact it will likely take a group of people; more on that later). Thus each person who does craft it will have some level of monopolistic control over the price, driving up prices well above what an NPC shop would buy it for.
Taxation and Intra-Nation Conflict
In any case, the other element I would introduce would be intra-nation conflict. Each nation would have a "King." This "King" would be the head of a guild that controls the nation. A guild could wrestle control from another guild through an organized attack on the King's stronghold, which would be possible every week (I basically stole this stronghold attack mechanism from Aika Online, so look it up for more info).
The power of the King on economic matters would actually be rather high through the mechanism of "taxation." The King doesn't actually tax the players, though. Rather he will tax the people who live in the territories he controls. For these purposes, the players are in the King's army. Thus, the more the King taxes, the more gold the government gets from the people, and therefore the great the money stream given to the army (the players). However, as any economist will tell you, high taxation lowers the incentive to work. Thus, the trade off with this is that high taxation leads to lower output by the people in the territories. This translates to less resources.
Therefore, taxation provides a trade off between the money stream and resource stream which the King must control. Too much taxation and there won't be enough resources to craft great items for the players in the nation. Too little taxation and the players won't have the money to buy the resources/items that they need. Of course, there will probably be disagreements over taxation policy, making attempted overthrows of the government have an actual point.
Mercenaries and Assassins
As I said before, I was thinking that players who hadn't logged in for a while wouldn't get their share of the money stream. Instead their money would go to the government. It is possible the King could be given the power to allocate some of the money stream away from players and towards government coffers as well.
In any case, I think there could be some cool ways of using this money. The King could use money to pay Mercenaries (who could be either players from other nations or NPCs I suppose) who could be bought to fight in battles against other nations or against those trying to overthrow the King.
This money could also facilitate an assassin system. I was thinking that, like Aika Online, the King and his guild would be given pretty large stat bonuses. Furthermore, the territories themselves might provide some passive stat bonuses to all players in the nation as well, or there could be a separate system such as the Relic system in Aika, where control of certain areas with "relics" provides the nation with stat bonuses. Either way, I was thinking that Kings could use their government money to buy an assassin (other players who agree to it) to kill another King within a certain timeframe. If the King is assassinated (not just killed on a quest or something), then his guild and the nation as a whole loses their stat bonuses for a certain period, making it both easier to take their territory, but also easier to overthrow them. They could also assassinate rival guild leaders, stopping them from attempting a coup for a certain time period etc etc.
Trade
Anyways, the last part was a bit off the economic topic, but is relevant in that it would be part of the economic powers of a nation's king. Trade between nations would also be an important part of the King's powers. As I said before, each territory would provide different resource streams. Thus, a nation could be left without a territory that would give them a resource they really need. As such, it would be possible for Kings to negotiate nation-to-nation trade agreements. If Nation A really needed Iron from Nation B, and Nation B really needed Wood from Nation A, then they could create an agreement where Nation A provides 10,000 Iron a day to Nation B, and Nation B provides 8,000 Wood a day to Nation A.
Furthermore, if two nations want to be allied, they could even provide completely free trade between nations, meaning players could buy resources/items from nations that aren't their own. The King could also put tariffs on goods from other nations, making them more expensive (and thus only worth buying if you really can't get it at home). The King would have to watch out with trade though, because a trade deficit would basically mean gold is flowing out of their nation and to the other nation.
Crafting Guilds
I alluded to this earlier when I said that an item might need to be created by a group of players. In order to encourage new players crafting, there would have to be a limit on the amount of resources a player could buy in a day. This would stop super rich players from quickly buying up all the resources every day, stopping new players from getting any.
However, the result of this would be that one player has a limited crafting potential when it comes to super expensive items. This would require the creation of crafting guilds. Let me give an example. Let's say there is a limit of buying 1000 Iron a day. Crafting a 'Super Sword' might take 1,000,000 Iron. Thus, a single crafter would need, at the least, 1000 days (almost 3 years) in order to make that object. Thus, the player would probably never make it. However, the player could make a crafting guild of 20 players. If each of them bought the max Iron every day, it would only take 50 days to acquire the resources to make the 'Super Sword.' Thus it could be made and sold at massive profit. This encourages the creation of crafting guilds.
Inflation
Rampant inflation is present in many MMOs. Farming of resources and players doing quests provides more money in the economy constantly, inflating prices. Inflation isn't the same problem in game as it is in real life. In real life, inflation discourages savings and other things that are not relevant in game. However, it still makes a game economy seem silly if its constantly inflating hugely. The other big problem is it discourages players from coming back to the game. So we don't want massive inflation.
How would this game deal with that? You are probably thinking about how there's a constant flow of money each day, thus creating huge inflation. However, my system provides a huge money sink in the form of buying resources. Every time a player buys a resources, he pays an NPC, and that money leaves the economy. Thus, the balance of resource and money streams determines inflation. For instance, let's say there are 100 players in a nation and taxes are set by the King such that each player gets 10 gold a day. 1000 gold is entering the nation each day. However, at the same time, the nation is also getting a resource stream of 100 Iron a day, with Iron costing 10 gold per unit. Assuming all of that Iron is bought, then 1000 gold is leaving the nation each day as well. Thus, the money supply stays constant.
Through this mechanism, the King of a nation actually can use the taxation system as a means of dictating the monetary policy of his nation much like the Fed does in real life. Effectively, the King can control the inflation/deflation rate in the economy, which could have some large implications.
Dealing with Certain Problems
- I said that NPC shops will always buy goods for a certain price. Well that won't always be true. If they did, players could farm them for money constantly, and that isn't realistic behavior. It would also create more inflation (which you don't need in an MMO) by having the NPC shops constantly giving money to people and not selling the item back to other players (thus getting money back out). Thus there will be some kind of limit on the number of a given item that a shop will hold at once. Thus, they might not hold more than 1000 daggers at once, for instance. Therefore, if no one buys daggers, then someone can't keep farming crafted daggers.
- You don't want one nation to dominate. One of the ways I would try to stop a nation from dominating is through creating a system where they can get overstretched. Each territory that is controlled carries with it the fact that monsters will attack given areas in that territory dynamically. If the monsters are not destroyed each time they attack, then their attack on the territory will be "successful" and the money/resource stream of that territory will be lessened for a certain time period. If one nation controls a huge amount of territories, these attacks will get overwhelming, and they will lose their advantage from having all that territory.
____
I know that was long, but what do people think?