I still think people are conflating capitalism(all exchanges are by def. equal value and there is no such thing as trade under nonviolent distress) with supply and demand economics.
True. My proposal has absolutely nothing to do with capitalism. Capitalism is political buzzword for a style of government-economic relationship. I'll note that your parenthetical isn't actually the definition of capitalism (which requires some mention of *capital*). Capitalism most certainly isn't the case in dwarf fortress, as it requires private ownership of the means of production (!true) and capital (wealth). This has nothing to do with how the market actually operates.
While I politically agree with Squirrelloid's inefficiencies, I'm willing to accept a (fantasy) world where government actions don't cause massive inefficiencies, or where other forms of economic layouts are possible. Supergeniuses coming up with new economic theories is, at best, like having Einstein theorizing in Newton's day: Sure they may be true, things may be more complicated than we see, but the apple still falls.
There's nothing political about my calling them inefficiencies. With government intervention things get sold at the wrong price. That's inefficiency by definition, no matter what you believe about whether the government should interfere or not. Regardless, at the level of intergovernmental exchange there's no power regulating the nature of those exchanges. And the fortress relationship to merchants is effectively that - your dwarves can't impose your laws on the caravan because they just won't trade, or should leave and not come back.
*sighs* don't bother trying to force capitalism upon an ancient people. Please.
I have nowhere advocated we institute capitalism in DF. For someone accusing me of a 'pathetic' understanding of communism, you don't even seem to know what capitalism is.
See
here. I might specifically point out: "In the modern capitalist state, legislative action is confined to defining and enforcing the basic rules of the market,..." and "...allowing the free play of supply and demand." That is, S/D is the 'basic rules of the market', which modern Capitalism tends to defer to, but is not part of Capitalism per se. A Capitalism which regulated a vastly different framework than S/D is imaginable (although with inefficiency like all attempts to alter the market's natural behavior), as are economic systems which are not capitalism wanting to enforce normal market behavior.
Also your understanding of communism is pathetically limited. Soviet Russia was totalitarianism as well as communist, all communist means is Government control over all businesses so everyone is in the employ of the government, slowly bringing everyone to equal level due to the fact wages can be set universally as opposed to differing for different companies, and in theory be set more fairly. By that standard USSR was not communist. The wages were by no means 'fairly' spread, therefore it was nothing but a totalitarian state pretending to be communist for control reasons.
Quoth
Wikipedia: "In modern usage, communism is often used to refer to Bolshevism or Marxism-Leninism." If I meant to refer to the more idealized concept that has never been achieved in practice, I would use the term Communitarianism, which is the preferred term in modern circles (because it doesn't carry the baggage associating communism with the USSR, China, et al.).
anyway, Yes supply and demand plays a role but the 'world' economy wasn't so big, things from far away were worth more, didn't mean the merchant would KNOW that there was a demand, he wouldn't have had any contact with the fort since the last time he came (so the only demand he'd have is for orders from people the previous visit) so he'd have to bring a wide variety of goods, in the end it was all down to bartering. the 'World economy' as you described it was nothing like today, they didn't have the communication for it to be.
Where did we move from 'the price the merchant is willing to sell goods at' to 'the goods the merchant brings with him'? My proposal is entirely about the *price* of goods. The merchant should arrive with an idea about the market outside the fortress, which is certainly going to influence his trading with the fortress (if he knows he can get 5x as much elsewhere, he's not going to sell it to you. Similarly, he should make reasonable offers based on some expectation of return for goods he takes off your hands).
Also, price carries knowledge about demand. If the merchant finds it harder to buy a particular good at last years price, he'll know that demand has gone up or supply has gone down. This is why markets are efficient - they provide a way for information about the desires of the population to be known to those who produce (and distribute) goods so that producers can produce an appropriate supply and distributors can bring an appropriate number with them. Sometimes there are mismatches, but its far more efficient than any other method.
How do you know he's had no contact. Maybe he ran into another caravan who had been to your fortress more recently? Being at your fortress is not the only way to get information about your fortress.
Meh, i'm of the firm belief that if you take a small slice of the economic pie and just observe it, for the most part it's random fun!
Therefore, having random prices and objects makes sense!
Maybe in the fortresses early year(s). But by the time you become a major industrial power (which with the rate a stonecrafter can spit out crafts, may even describe the first year in some industries) you shouldn't just be a price taker.
Also, they aren't random prices, they're fixed absolute prices. Which makes every game feel very much the same, no matter how different the world is. = Less Fun in my book.