Do customs via POCO mirror real world economics?

So far have seen tax rates in the mid 20% range on these.

Is this an instance where Eve differs from real world economics in terms of how someone with a POCO generates income? I’d figure, to compete with other POCOs (is there competition?), and get more transactions by incentivizing folk to produce more, i.e., ‘a fixed slice of an expanding pie, versus all of a crumb.’ Or is this a case of some sort of oligopoly cartel having the majority of POCOs, where they are happy with a crumb, because no one else is getting anything much, and more or less mercantilism era thinking?

How does placing a fairly disincentivizing tax rate on an activity profit them? And more so, why does CCP, if it is so, have it set up that way? Do they explain somewhere the design reasoning for cooking in protectionism?

Send me a billion isk and I’ll tell you the answer.

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Owning POCOs is usually a net loss due to defense costs, so most POCO ownership is concentrated in the hands of a few select groups that leverage their numbers for collective defense. And when you have a monopoly or an oligopoly, you can charge whatever you want.

I own a few POCOs and keep taxes low. But I’ve also spent more on their defense by this point than they’ll ever be worth over the lifetime of the game, so it’s just an interesting thing to do as opposed to some kind of genuine financial opportunity.

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You can accept Destiny’s answer, or send me 1 billion isk.

The truth WILL surprise you!

I am stuck in a small Amarr monastery doing my studies good friend. But I have found a cache in a secret bank account of 1 Googlins ISK… I will be happy to share a billion, and a trillion with you, if you send me two billions now, that I need to work out the banking fees so these funds can be released to us.

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Sorry, isk flows one way with me.

In the RW some times there are very high customs taxes (usually referred to as import tax) when the importing entity wants to discourage whatever it is from coming in (usually to promote more local products instead).

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They rely on ignorance and arrogance .

New players maybe ignorant that all pocos are not equal and those that are aware may be to arrogant to check or factor that into there decision when they find a planet that suits there needs .

It doesn’t, but nothing is free.

To make sure that nothing is free.

I miss old player stations by moons where you could infinitely research bpos

~220 bil per month on export tax across whole New Eden. Id say it’s not worth the hassle even after absurd industry changes.

Some pocos are taxed high for outsiders (from the owners point of view) and extremely low for their blues. Doing this can discourage use of the planets by design so they don’t deplete as fast due to crowding, but if someone wants to pay the high tax then let them.

The tax calculation also isn’t based on trade hub prices but on some index CCP uses. Thus if you run some numbers, for certain items the seemingly high tax is not too bad and for others even a low tax can be crushing.

You can make your process with tax in mind by trying to not have as many imports/exports.

In my experience we have encountered pocos with too high of tax or with low tax but we wanted to control who used them. We would ask the owner if they would sell it to us or otherwise we would destroy it. Many times the owner would just sell it. If there was no response or they said no then we would blow it up.

Even if they defend with overwhelming force, eventually it gets tiring day in and day out for them to constantly show up, repair, etc. something that isn’t giving the actual players that are defending much of a reward. Pocos are also on the lower end of structure value as well so there isn’t much of a loss on the kill board if someone loses it. So by a constant campaign over time defense becomes a waste of time and many will eventually let go of the Poco to not have to deal with it anymore. This is especially true if the Poco is located far from the owner’s normal base of operations. We have both taken and lost pocos in this manner.

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I just started fiddling with Planetary Interaction in hisec to get the feel and reflexes. If I go into is more, with other toons as well, I will certainly be shopping around for good tax rates.

Highsec has way higher taxes and way lower yield. Best bet (if extracting anything) if you want to make more profit is to get out of highsec ASAP.

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