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Game Economy Design

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Deflation

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A decrease in prices due to an increase in the value of currency can lead to hoarding. Combat this with mechanics that encourage spending, such as limited-time items or events.

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Fiat Money vs Commodity Money

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In-game currencies often act as fiat money with no intrinsic value, while items can be seen as commodity money. Balancing these forms can stabilize the economy and offer multiple avenues for trade.

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Velocity of Money

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The rate at which currency circulates in the economy is crucial. High velocity can indicate a healthy economy, controlled by limiting hoarding behaviors and rewarding spending.

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Elasticity

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In-game item demand elasticity affects how changes in price influence the quantity demanded. By adjusting this, developers can control the consumption pace of items and services.

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Pareto Efficiency

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An in-game economy is Pareto efficient when it's impossible to make one player better off without making another player worse off. This is rare in game design but striving for balance can improve the overall fairness.

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Supply and Demand

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In game economies, balancing the availability of resources (supply) with player desire for those resources (demand) can ensure a stable market where items retain value without causing inflation or deflation.

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Inflation

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When there's too much in-game currency or resources, their value decreases. This can be countered by sinks that remove currency/resources or by introducing higher quality items to justify increased expenditures.

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Money Sink

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Money sinks are vital for removing excess currency from a game's economy, preventing inflation. These can include repair costs, consumables, or other one-time use items.

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Utility

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Utility is the satisfaction a player gains from consuming a product or service in-game. Providing a range of utilities can fulfill different player desires and keep the economy varied and interesting.

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Opportunity Cost

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Players often have to make decisions about resource allocation. Influencing these decisions with balanced choices can add depth to the game economy, making gameplay more strategic.

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