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One of the biggest problems with most MUDs is economics. I've heard numerous people comment on the impractical and one-sided natures of most MUD economies and by my own observation, I completely agree. They just don't function properly for a variety of reasons. Note, that I'm primarily referring to RPI economies since there are entirely different factors in H&S MUDs.
Many MUDs simply don't create a viable economy whether through failure to understand economics or lack of effort. It takes a lot of effort and planning, but a working economy can be achieved (especially if you've got a lot of research upon which to plan out your economy). Still, there are problems.
Primarily, the problem that crops up is balancing the economy against PC online-times and actions. Some MUDs increase prices of food and clothing to compensate for a lack of adequate consumption due to PC offline times. Of course, unless the system's flexible enough to account for all degrees of PC activity, some PCs will slip through the cracks and upset the balance.
Another problem, and probably even greater than the first, is PC response to economic controls. Some will do as much as they can to generate revenue without regard to IC environments. Some MUDs will implement timers on crafts to prevent PCs from overuse/abuse of such methods, but there are always additional crafts that PCs then turn to. In other words, they whittle as many wooden bowls as the code will allow and sell them, and then begin whittling toothpicks until the constraints kick in and sell them; then having exhausted the ability to sell wooden products, they fish and hunt until they've slaughtered animals on a American bison-like magnitude and sell the meat, hides, etc. Through repeated use of this process, they amass more wealth than is IC-reasonable (even if it's not much, it's almost always more than should be earned through such means). Additionally, PCs upset the economy by flooding it with items that there isn't demand for (which of course, the economy shouldn't welcome, and code can only go so far in countering this type of thing).
As any decision made is likely to please some players while turning off others, how does one balance an economy against these problems? Several ideas come to mind, but each has its own pitfall.
1. As said above, increase prices and such to compensate for PC offline time. This has a tendency to hurt those players who participate more realistically in the economy while favoring those who find ways to simply generate unrealistic sources of revenue.
2. Restrict avenues of attaining money. In other words, eliminate non-guild/shop related forms of generating revenue such as hunting or individual crafting. Of course, cottage industries are a primary source of much material in most periods, making such restrictions counter-productive to a realistic economy.
3. Tie in the economy to a PC's online time. In other words, the amount of time you spend offline deducts from earned wages to reflect offline expenses for food, etc. Of course, real life must take precedence for players and this system can thus lead to problems when players simply can't be online enough to balance the deductions. Additionally, you still have the problem of on-the-side means of making money.
4. Heavily monitor the economy and PC activity by hand. Of course, this requires a large staff with a lot of time to dedicate to this effort and in the end will probably not be successful simply given the difficulty of the endeavor.
5. Implement a barter-only economy. To some degree, this tends to exist, but hardly as the only form within most games. It would also require some coding to make completely viable, and most players would probably find the concept difficult to accept. And still, it can lead to the abuses described above with PCs simply generating and hoarding goods rather than coin.
I'm sure there are other ideas that I've overlooked (that happens when one is tired). I'm curious as to what thoughts others have on this subject, both in regard to problems with establishing a viable economy as well as methods to solve them.
Take care,
Jason
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