I am proposing a change to the current 50% depreciation of companies. Currently as soon as you buy a company of any type you can dissolve it for 50% of investment and all but raw companies can be sold as well but only within set limits.
I have a few ideas that can be used together or just one or the other.
1) Change depreciation so that you receive back 75% of your investment. This could help the economy because people might not want to take a huge loss on something they just bought and no longer makes them any money. More players would be encouraged to dissolve their company at low or no profits and hence supply would decrease, raising prices and profits. EDIT: Thanks to eShades I remembered that this would not work currently because of the usual 45% off sale on upgrades. You would actually profit from this so either admins would need to stop those sales or change them to a smaller percentage off for this one to work. Otherwise this idea is crap!
2) Change depreciation so that you lose 10% (or any number admins think works best) of your investment right after you buy it. Then have a small incremental decrease for each day/week/month that you own it. For example I buy a raw company at 35 gold so immediately i can only dissolve it for 31.5 gold and each week that goes by its worth 1% less. There would need to be a floor where it is never worth less than 50%
3) Change current limits of selling companies between prices. For example currently you can only sell a Q1 company between 9 and 11 gold. You could change it to 5-15 gold or have no limits at all.
4) Add some kind of property tax. I have proposed this idea before and I have a new twist. I know we all hate taxes but this would actually help the economy big time I believe. So essentially the tax is applied on every company you own, each day whether you use it or not. For example lets say I have 10 companies but all 10 are only making me 1cc a day profit each. And those 10 have been for low profit for awhile and the future outlook doesn't look good. Since I don't want to lose 50% of my money dissolving it, I will keep it and produce at only 1cc. However, if the tax costs me 2cc per day on each company than I am losing 10cc a day on the companies i'm not even using. So this encourages players to sell or dissolve companies when they are producing small profits. This would decrease supply again making others more profitable. This is basically to create a fixed cost, or overhead. Without any fixed costs there is low incentive to leave the market. The only problem with this idea is that if a player doesn't have sufficient funds. To help combat this the player will be unable to work in any of their own companies. This is the only thing admins need to figure out how to get past.
5) This one is similar to #4 except instead of the tax you reduce the amount of energy that can be stored by 10 for each company they own. So for example if I currently have 700 energy storage and 700 recoverable but I own 10 companies then it drops and now I can only store 600 energy and 600 energy recovery. This is a constant cost for as long as you own the companies. With this change you would most likely want to remove the current 10 energy use each time you work. So it would cost you that energy storage but it doesn't take any to actually work them. Another thing it does is limit how many companies you can have, although it would only affect the huge players with hundreds of companies. Again this is producing a type of fixed cost in that you have less energy you can use each day. This encourages people to only keep around companies that are more profitable. If implemented today many people would dissolve companies decreasing supply and increasing profits again. This is how an economy should work. I like this one better than #4 because there is no way around it and easier for players to understand.
One thing is certain in a market economy. You need incentive to get in and out of the market. Right now without any fixed running costs there is little incentive to get out so we have over production.
Thank you for reading and I hope you like the ideas as I put much thought into them. Please give your feedback below!
Edited by I am The Best23, 02 May 2015 - 05:47 PM.