Handbook & Docs
Telegram Twitter Commodities Economics Model Alternatives
Home / Handbook / Market And Trade / Free-Trade Economic Architecture & Pricing Mechanics

Free-Trade Economic Architecture & Pricing Mechanics

BizEmpire operates a 100% player-driven free-market economy where players maintain total price autonomy over all commodities, wholesale factory yields, and retail store shelves.

---

1. Direct Wholesale Factory Sourcing & Supplier Directory

Every manufacturing facility (Factory, Mill, Mine, Farm, Warehouse) allows owners to set a custom Wholesale Price (£/unit) and toggle Public B2B Availability:

  • Player A's Factory: Can sell Shirts at £5.00/unit (e.g. mass production at volume).

  • Player B's Factory: Can sell Shirts at £20.00/unit (e.g. masterwork Q9.5 craftsmanship).

  • Supplier Directory (/api/market/suppliers): Retail store owners and industrial manufacturers can browse all active suppliers globally, compare prices, quality ratings, and logistics, and order stock directly to their facilities with instant delivery.
  • ---

    2. Real-World Multi-Store City Retail Competition

    In each municipality (e.g. London, Amsterdam, Paris), retail stores compete directly against each other for the local citizen population's demand:

  • Granular Unit Pricing: Player A can price Store 1 (Cheapside) at £20.00 and Store 2 (Westminster) at £21.00, while Player B prices Store 3 at £25.00.

  • Citizen Attractiveness & Market Share:

  • \text{Attractiveness}_i = \frac{(\text{Quality}_i / 5.0)^{1.2}}{(\text{Retail Price}_i / \text{Benchmark})^{1.5}} \times \text{NewcomerBonus}_i

  • Market Share Distribution: Citizen demand is distributed among competing stores based on their relative attractiveness. Stores offering superior value or quality capture higher sales volume.

  • Exact Realized Revenue: Each store receives \text{Units Sold} \times \text{Its Unique Retail Price}.

---

3. The Commodity Exchange & Double Auction Order Books

1. Bid Orders (Buy): Enter maximum willing purchase price. Escrows buyer cash.
2. Ask Orders (Sell): Enter minimum acceptable selling price. Reserves inventory.
3. Execution & Settlement: Continuous double auction matching executes trades when \text{Bid} \ge \text{Ask}.
4. Transaction Tax: Standard 2.0% Trade Tax deducted from gross proceeds to fund municipal infrastructure.