I was going to say something about contracts, where an agent would gain access to a service but with some commitments. e.g. after buying a monthly bus ticket, the agent has a 'sunken cost' that it has to consider when evaluating other forms of transport. So if a better option pops up, they likely won't change at least until their monthly ticket expires.

The rational thing to do would be to choose the most cost-effective transport. The bus is free but takes longer (waiting/hopping buses/frequent stops).

profit = time spent working * wage rate - money spent on transport

For bus, money spent on transport is a fixed cost. For car,

money spent on transport = cost of fuel * fuel consumption rate * path length

If the cost of fuel, or consumption rate is low, or the path short, cars will be more cost-effective. If a bus pass is already purchased, it's cost = 0 (sunken cost as you said).

But if a bus takes significantly longer, it may be less profitable even if free. The choice must be made before the bus pass is purchased to gain the most benefit.

You could use these kinds of contracts to build hierarchies to solve the farm issue too. E.g. a field can be worked to produce food, but it's owner has specified that that workers can only deliver the food to a specific silo (also belonging to the owner).

I'll add an option to specify storage capacity of different buildings. If 0, they'll move it to a suitable owned building.

And rules for which buildings must be near each other (silo next to field).

As with the bus ticket example, the farm owner might sign a distribution deal with a particular retailer for some time period, where breaking the contract means he has to pay a penalty fee. The retailer may sign a contract with a particular trucking group to move food from the silos to the retailer, etc, etc..

So I would add an option to specify which outputs and which inputs require a distribution deal. Rather, which inputs/outputs are wholesale and which retail (end consumer).

I don't know why a deal with one retailer should prevent them from having a deal with another. PlayStation ships at Futureshop and Best Buy after all.

I'm working on the game for iphone, ipad and android. Check my journal.

http://www.gamedev.net/blog/1512/entry-2256323-next-project/

It's a limited version of the full economic engine I will eventually make.

Polyfrag, here's my question: what is the core appeal of this game?

What aspect of micromanaging an economy do you feel is going to be fun?

Trying to figure out how to win. How to gain the most profits -- what price to set, what to set the production quota to, where to build. I designed this game without knowing what the winning strategy is.

When you lower or increase a price, I'll try to make it react in an intriguing way instead of there being one dumb strategy.

Increasing the price alienates some clients while earning more from others, depending on their proximity relative to other suppliers. The one who's closest to the clients can set the highest price. Your profits also depend on the price of your inputs. Its most profitable to own your inputs. You won't have the resources in the beginning to build all the necessary buildings, so you depend on others.

When you lower or increase a price, I'll try to make it react in an intriguing way instead of there being one dumb strategy.

Hm, you know for me, a great way to make the effects of your decisions in the game interesting would be the human element.

What if your other main goal was to keep happy the citizens under your jurisdiction? That if they were made unsatisfied, they would stop working, or not work as efficiently. And not just with obvious things like keeping down on crime or fires or pollution, but also for more surprising things that people could have a problem with.

I was thinking of "utility".

Maybe I have to make a full-fledged simulation with governments and taxes etc. Then crime/fire-fighting/pollution would make sense.

I highly, highly recommend you check out the writings of Thomas Sowell. Two of his books on economics, "Basic Economics" and "Applied Economics: Thinking Beyond Stage One" are very informative, and very engaging. Particularly the first third of Basic Economics. They put a lot of focus on the cause-and-effect relationship politician's decisions have with the economy.

Found the books at a local library. Thanks. I'll post my thoughts as I read.

Yes I'm going to read them. Why not.

Underground Mine

Can be

- horizontal tunnel carved into hillside with portal outlined by frame of rough-hewn timbers

- more commonly shaft mines where entry is vertical requiring a hoist