dibbler/docs/economics.md

Economics

This document provides an overview of how dibbler counts and calculates its running event log.

It is a sort of semi-formal specification for how dibbler's economy is intended to work, and is useful for both users and developers to understand the underlying mechanics.

Some general notes

• All calculations involving money are done in whole numbers (integers). There are no fractional krs.
• All rounding is done by rounding up to the nearest integer, in favor of the system economy - not the users.
• The system allows negative stock counts, but acts a bit weirdly and potentially unfairly when that happens. The system should generally warn you about this, and recommend recounting the stock whenever it happens.

Adding products - product stock and product price

This section covers what happens to the stock count and price of a product when a user adds more of that product to the system.

When the product count is 0 before adding.

When the product count is 0, adding more of that product sets the product count to the amount added, and the product price will be set to the price of all products added divided by the number of products added, rounded up to the nearest integer.

new_product_count = products_added
new_product_price = math.ceil(total_value_of_products_added / products_added)

When the product count is greater than 0 before adding.

When the product count is greater than 0, adding more of that product increases the product count by the amount added, and the product price will be recalculated as the total value of all existing products plus the total value of all newly added products, divided by the new total product count, rounded up to the nearest integer.

new_product_count = product_count + products_added
new_product_price = math.ceil((total_value_of_existing_products + total_value_of_products_added) / new_product_count)

When the product count is less than 0 before adding.

Note

This situation can happen when the product count in the system does not accurately reflect the real-world stock of that product. This sometimes happens when people throw away product that have gone bad, or if someone buys something and forgets to actually take it from the shelf.

When the product count is less than 0, adding more of that product increases the product count by the amount added. The product price will be recalculated with an assumption that the existing negative stock has a total value of 0, plus the total value of all newly added products.

[!WARN] Note that this means that if you add products to a negative stock and the stock is still negative, the product price will be completely recalculated the next time someone adds the same product. There will also be a noticable effect if the stock goes from negative to positive.

new_product_count = product_count + products_added
new_product_price = math.ceil(((product_price * math.max(product_count, 0)) + (total_value_of_products_added)) / new_product_count)

A note about adding 0 items

If a user attempts to add 0 items of a product, the system will not change the product count or price, and no transaction will be recorded.

Buying products - product stock

When the product count is positive and you buy less than or equal to the stock count

When the product count is positive and a user buys an amount less than or equal to the current stock count, the product stock count will be decreased by the amount bought.

new_product_count = product_count - products_bought

When the product count is positive or 0 and you buy more than there are in stock

When the product count is positive and a user buys an amount greater than the current stock count, the product stock count will be decreased by the amount bought, resulting in a negative stock count.

new_product_count = product_count - products_bought

Note

This should also yield a warning, recommending the user to adjust the stock count for the product in question.

Buying from negative stock

When the product count is negative, buying more of that product will further decrease the product stock count.

new_product_count = product_count - products_bought

Note

This should also yield a warning, recommending the user to adjust the stock count for the product in question.

Buying items with joint transactions.

The same rules as above apply for all 3 cases.

Note about buying 0 items

If a user attempts to buy 0 items of a product, the system will not change the product count or price, and no transaction will be recorded.

Interest and penalty

What is interest, and why do we need it

We have had some issues with the economy going in the negative, most likely due to users throwing away products gone bad. When the economy goes negative, we end up in a situation where users have money but there aren't really any products to buy, because the users don't have the incentive to add products back into the system to gain more balance.

To readjust the economy over time, there is an interest rate that will increase the amount you pay for each product by a certain percentage (the interest rate). This percentage can be adjusted by administrators when they see that the economy needs fixing. By default, the interest rate is set to 0%.

Note

You can not go below 0% interest rate.

What is penalty, and why do we need it

We currently allow users to go into negative balance when buying products. This is useful when you're having a great time at hacking night or similar, and don't want to be stopped by a low balance. However, to avoid users going too deep into negative balance, we make the cost of the product multiply by a penalty multiplier once the user's balance goes below a certain threshold. This penalty multiplier and threshold can be adjusted by administrators. By default, the threshold is set to -100 krs, and the penalty multiplier is set to 200% (i.e. you pay double the amount of money for products once your balance goes below -100 krs).

The penalty starts counting as soon as your balance goes below the threshold, not when it is equal to the threshold.

Note

You can not set the penalty multiplier to below 100% (that would be a rebate, not a penalty), and you can not set the penalty threshold to above 0 krs (we do not punish people for having money).

Adding products - user balance

When your existing balance is above the penalty threshold

You gain balance equal to the total value of the products you add.

Note that this might be separate from the per-product cost of the products after you add them, due to rounding and price recalculation.

new_user_balance = user_balance + total_value_of_products_added

When your existing balance is below the penalty threshold

This case is the same as above.

Buying products - user balance

When your existing balance is above the penalty threshold, and the purchase does not push you below the threshold

You pay the normal product price for the products you buy, plus any interest.

new_user_balance = user_balance - (products_bought * product_price * (1 + interest_rate))

Note that the system performs a transaction for every product kind, so if you buy multiple different products in one go, the rounding is done per product kind.

When your balance is below the penalty threshold before buying

You pay the penalized product price for the products you buy, plus any interest.

The interest and penalty are calculated separately before they are added together, not multiplied together.

penalty = ((product_price * penalty_multiplier) - product_price)
interest = (product_price * interest_rate)
new_user_balance = user_balance - (products_bought * (product_price + penalty + interest))

When your balance is above the penalty threshold before buying, but the purchase pushes you below the threshold

TODO:

Joint purchases, when all users are above the penalty threshold and stays above the threshold

TODO: how does rounding work here, does one user pay more than the other?

TODO: ordering the purchases in favor of the user.

When performing joint purchases (multiple users

Joint purchases when one or more users are below the penalty threshold

TODO

Joint purchases when one or more users will end up below the penalty threshold after the purchase

TODO

Who owns a product

When throwing away products, it can be useful to know who added the products in the first place. Dibbler will look back at its event log to determine who added the products that are being thrown away, and pull the money from their balance in order for the economy to stay sane.

The algorithm is based on FIFO (first in, first out), meaning that the products that were added first are the ones that will be considered thrown away first. This might not always be accurate in real life (someone could buy a newer product and add it to the shelf before an older product is added and then considered newer by the system), but it is an overall reasonable approximation.

When adjusting the product count upwards manually, the system will consider the new products to not be owned by anyone. When adjusting the product count downwards manually, the system will let go of ownership of the products being removed according to the FIFO queue, without adjusting their balance.

If the stock count of a product goes negative, the system will consider that the products being bought are owned by no one, and will not adjust any balances. The system should warn about the negative stock count, and recommend recounting the stock. As mentioned above, the manual adjustment made when recounting the stock will not assign ownership to anyone.

Upon throwing away products (not manual adjustment), the system will pull money from the balances of the users who added the products being thrown away, according to the FIFO queue. In the case where the systemd decides that no one own the products due to manual adjustments, the system will not pull any money from anyone's balance and let the economy absorb the loss.

Other actions

Transfers

Note about self-transfers

Balance adjustments

Updating the economy specification

Keep old logic, database rows tagged with spec version.