Price Balance 1.3

[Redknight]

In my game for Japan, i see strange behavior of the prices in the market. For example, Japan produces 50 silks per turn, sells 30 in a world market and 20 on the internal. Demand for Japanese silk is 120, and stable. The price falls to 5.
Same thing for production = 90, world sale = 70, internal sale = 20. Price stable at 5, demand ~95.
It is strange that the need for the goods isn't satisfied, and the price on a minimum.
Probably, it is considered not only balance of supply and demand, but also stocks of the goods?

[cwegsche]

I think this can be seen with almost all goods after lets say 10 - 15 turns. Nearly all goods will drop in the price and you can shut down nearly all factories producing steel, manufactured goods, machine parts (this is a shutdown on turn one), chemicals not to speak of iron, coal, minerals as there is no need for them anymore ...

[Kensai]

As the world economy takes off slowly, eventually demand will raise. It is all tied to population and industrialization. Give your game at least a decade to stabilize. In our PBEM we are in 1869 and even China is demanding lots of goods as Empress Cixi is rather active!

[Redknight]

Almost on all goods demand is much less than offer. It is not surprising that the price for them low.

But demand for silk and other goods from luxury group was high from the beginning of the game.
Now it is 1872 and demand for silk is higher than the offer. So why the price on a minimum?

[Kensai]

I think I've read somewhere that prices go down when a nation has reached "wastage" levels of accumulation. Perhaps a major producer, such as China, is not able to sell all its lot (independently of the demand) and has accumulated to the point it is rotting in storage. In that case, the trade algorithm of the game triggers a drop in price. Damn me, don't remember when we were discussing this. Perhaps Pocus could answer.