Individual Investors ruin the game

General discussions about the release versions of Capitalism Lab
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Ragnarill
Posts: 1
Joined: Sun Sep 11, 2016 5:04 pm

Individual Investors ruin the game

Post by Ragnarill »

In all of my games after ~30 years most companies run out of publicly traded stocks.

They are not bought by large corporations, instead: They are all hoarded by a few "individual investors" who hold up to 90% of the stock. Offering to buy their stock from them gives the player the option to buy the stock for 300-400% above market price. So to buy a stock a 300-400% loss is incurred on the player. They never sell their shares back to the public.

A few years later, there are 0% publicly traded shares on the stock market.

These individual investors don't do any investing. They hoard stocks and then build mansions everywhere. They never sell their stocks or mansions so there is no speculation going on. Instead they take up valuable space.

1: Why can't they sell their stock near market prices? Why do prices have to be so absurd?
2: Why do they never sell their stocks back to the public? After making a profit you'd think they'd sell it but they just hold on to it forever.
3: What purpose do they have in the game? They just clog up space and make it impossible to buy certain (and eventually all) stocks. There is no competition or business going on.
4: How can I remove them from the game? Corporations are reasonable, they own a few percent of a stock, if more they initiate a merger. Sell their shares for profit and build businesses. Individual investors don't do any of that!
dimond
Level 3 user
Posts: 50
Joined: Fri Aug 01, 2014 4:25 am

Re: Individual Investors ruin the game

Post by dimond »

1,2 i have suggest with develop team about this issue.it look like not buy and sell to take some profit for AI.and i found AI has buy stock eqully ex. Ai buy 5.3% it has another person buy same 5.30%
But in economic sim dlc. I see growth rate gdp and coporate it hardly than normal version it's look so realistic more.

i think add a more person to trade stock for more frequent.give that feel like competition to trade stock

In the future i think maybe dev team focus stock market.




3.i agree with that but i think this game purpose is practice for fix the problem of business.it has competition with AI company to steel marketshare.etc all of these about business

4.you can turn off AI merger
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eleaza
Level 7 user
Posts: 699
Joined: Sat Jul 09, 2016 2:40 pm

Re: Individual Investors ruin the game

Post by eleaza »

Ragnarill wrote:In all of my games after ~30 years most companies run out of publicly traded stocks.

They are not bought by large corporations, instead: They are all hoarded by a few "individual investors" who hold up to 90% of the stock. Offering to buy their stock from them gives the player the option to buy the stock for 300-400% above market price. So to buy a stock a 300-400% loss is incurred on the player. They never sell their shares back to the public.

A few years later, there are 0% publicly traded shares on the stock market.

These individual investors don't do any investing. They hoard stocks and then build mansions everywhere. They never sell their stocks or mansions so there is no speculation going on. Instead they take up valuable space.

1: Why can't they sell their stock near market prices? Why do prices have to be so absurd?
2: Why do they never sell their stocks back to the public? After making a profit you'd think they'd sell it but they just hold on to it forever.
3: What purpose do they have in the game? They just clog up space and make it impossible to buy certain (and eventually all) stocks. There is no competition or business going on.
4: How can I remove them from the game? Corporations are reasonable, they own a few percent of a stock, if more they initiate a merger. Sell their shares for profit and build businesses. Individual investors don't do any of that!
The one with 90% holding of a company's stock is most likely the CEO of that company. Like human player, AI corporations like to buy back their own stock after the corporation has ample cash at hand and profit they don't know where to spend. And the speed of their purchasing back depend on their personality, some buy back very quickly, some waited for a long time. After 30 years those survived will most likely be these successful and stable corporations.

But this is mostly an issue if the game is setting give AI enough advantage to stay stable. At much higher difficulty and many AI competitors (like above 30), Combined with inflation setting, most of the AI corporations will not be successful, and a lot of them will have empty stock, and regularly issuing more, if they run low on cash, or simply have too much issued shares to be bought by any AI persons.

I personally think the in-game stock price is massively under-value, and in fact the premium price is about the right level. And only the CEO of a corporation will ask the ridiculous 300% to 400% market price. Independent investor person will normally just ask around 200% premium price, and this level isn't that high when the timing is right. Even corporate owned stock is about this level (about 200%)

Also individual investors will sell the stock they owned, when a stock's performance start to fall, especially when a stock's price changed very rapidly in a short time. And I think it's by design so players have to make the hard decision in early game. If players want to play the stock market, they better enter the capital game quickly (within the first couple of years and probably within 20 years), otherwise it will be harder and harder.
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