liveboy21 wrote:Buying and selling to get both markets to have the same price will probably be the correct solution. You have two markets that have different prices and a trader that has the ability to access both markets. The trader would then choose to buy a good at the lower price and sell the good at the higher price simultaneously. This trading strategy is known as arbitrage.
Since the trader will sell in the more expensive market and buy in the cheaper market, the prices will eventually become the same. There is no difference between the markets and if a difference appears for whatever reason, the trader will take advantage of it and cause the price to equalize once more. This effect is known as the law of one price.
It's hard to say exactly how many trades will happen based on the little information about your ecomony model (eg. where do credits come from, where do goods come from, how fast do they grow, does trading have restraints, etc) but you can expect that there will be arbitrage trading.
Gear wrote:I'm not sure if it would be possible to constantly eat enough chocolate to maintain raptor toxicity without killing oneself.
It will still always (for almost all starting values) be possible for the trader to make a profit on a trade and so, in this set up (both the resalable and non-resalable versions), the trader will eventually end up with all of the money in the world.
eSOANEM wrote:The price of goods in the cheap system (A) is (A/a)*(a+x)/(a-x) and in the expensive system is (B/b)*(b-x)/(b+x) and the trader's profit is x(B/b-A/a) after one trade.
Hi, can you specify what is the input/output for alpha and beta.
i.e if goods are replenished etc (conditions)
Users browsing this forum: No registered users and 8 guests