I will also add that T2 BPOs dominating some market is not necessarily a bad thing. This is rather counter intuitive result but…continuing with the notation in my last post. Since the minimum cost for some set of arbitrary prices is C1 and the price is below C1 what does this tell us? That this good in question will not be produced. I find it hard to believe that having zero of some good is better than have some non-zero quantity. The fact, that some players earn a modest level of economic profits in this case is not bad, it is good. It allows those players who want the good in question to obtain said good.
The counter argument is it is better that players who want the good won’t get that good and somehow…that…makes the game…better? I don’t think so.
They can make themselves the sole supplier because they can satisfy the demand for a given range of prices.
For a given price there is a level of demand. In fact, there is a relationship between prices (and other variables) that determine how much consumers will want at each price. It is called a demand function. If at some price the T2 BPO holder can meet all the demand and since the T2 BPO can produce the good more cheaply than invention the T2 BPO holder can set a price that excludes inventors yet allows him to earn a profit.
This isn’t hard. Why are you having an issue here?
no.
They can make themselves the sole suppliers “for a range of prices”.
Does not mean they can make themselves the sole suppliers.
Again, circular argument.
Of course if you can fill all the demand for cheaper then you can set your price to be the only one supplier with a gain.
But this is only true when you actually can fill the demand for cheaper.
Untill you have proven that T2 BPO owner can fulfill all the demand, you have not proven that they can make themselves “the sole producer”.
I already explained it. They have the production capacity to meet all of the market demand. They also have a lower cost than invention. So they set the price below that of inventors and there you go. They have set a price below which inventors can supply the market and can satisfy all the demand and they are the only one in that market.
Seriously you are literally the most insufferable and tedious poster here…and now we can conclude an inability to apply logic as well. There is no question begging here. That your pea brain cannot apprehend the written word is nobody’s problem but yours.
Yes, which is exactly what @Abruzzi_Oskold noted. If you could actually read and comprehend you’d have seen this part,
If he cannot enter that market because the price will not cover his costs then either the people supplying that market are complete idiots who keep throwing away money…probably even real life money. Or there is someone in that market who has a T2 BPO and can make enough of the item in question and also charge a price that keeps the inventors out. If the T2 BPO player could not meet all the demand the price would be bid up and inventors would enter.
Lets try an example that might penetrate your ignorance. Suppose the entire demand for a good is 10. Suppose I have a T2 BPO and I can make up to 20 of the item. I can clearly satisfy all of the demand. Now all I have to do is set a price below the cost of invention. Now I have the market to myself. It is really that simple…but apparently too complicated for you.
Assuming a production run is 9min in NS, that means a T2 BPO can produce 160 items per day. That’s less than 7% assuming half the orders of the market are resell.
How is that a “production capacity to meet all of the market demand” ?
Most markets the T2 BPO holders cannot not meet the demand. Thus, invention takes care of the “residual” demand. And since there is no product differentiation it really doesn’t matter in that the market moves towards marginal cost. Of course, marginal cost also moves around as various factor input prices move around and also the market clearing quantity moves around as well.
However, it is possible there could be a few markets where demand is thin and there is a T2 BPO holder who could, in theory, take over the entire market. It would not be a large market and any price the T2 BPO holder charges would be capped by the (marginal) cost of invention. As I already noted this is not nearly as big a deal as has been made out. The goods are getting on the market at a price lower than invention which is a good thing. Absent the T2 BPO there might be no market at all or the market might be much smaller.
T2 BPOs are not the problem many claim them to be with the advent of invention. And for quite a few items there are no T2 BPOs anyways. And over time T2 BPOs will slowly leave the game as players who hold them eventually leave the game.
This is the first T2 BPO thread I’ve seen in years and it simply is not a big enough issue for CCP to do anymore about. They should focus their limited time and resources elsewhere.
Indeed and that’s why I ask you to prove it.
Otherwise it’s just useless theoretical blabbering.
You’ll note I did not say you were wrong. I only asked you to prove what you affirm.
What ? You affirmed without any proof that T2 BPO DOES give the possibility to be the sole supplier. I showed you that in the case of DCII one BPO is not enough, which demonstrates that this is not true in all cases and thus need to be observed on a per-case basis.
You showed nothing at all, just claiming things without a proof.
And I have proven that it is theoretically possible. You did not ask for specific examples and even if there were who cares as that market is still working and the good is being provided at a lower cost. Hell there are some T2 BPOs where the market is ■■■■ anyways as there simply is no demand. A buddy of mine has a T2 BPO, but it is really nothing more than a “collectors item” as there is no market for the good (and no I don’t recall the item, but if it is that important I can ping him in game).
T2 BPO’s simply aren’t the issue the anti-T2 BPO people think it is.
No I did not. In fact, you yourself noted the very conditions under which it could happen. So technically we are in agreement but whatever issues you have going on in your head won’t let you see that and you’ll just keep posting and posting and posting.
So here we have yet another thread in which you show yourself to be the most insufferable and tedious of posters…but go ahead and have the last word.
