Does the IFB only adjust indicative prices according to the approved proposals?
Could there be a situation where supply and demand are in alignment but some proposals’s SB/SC Ratios are below 1 and are likely getting rejected?
I feel like the opposite could happen: all proposals SB/SC Ratios are above 1, but there is existing demand that hasn’t been met.
Looking for the definitive criteria that would lead to the planning being considered finalized: supply/demand alignment + all proposals approved?
Ok, my current thinking is that all proposals are included in IFB indicative price determination because otherwise how would you know that there is pressure on a particular good if that WC’s demand wasn’t weighed in.
Regarding the SB/SC ratio of production proposals, I think that if they were below 1, their workers will only have shot themselves in the foot because their effort rating is tied to their SB/SC ratio.
I am working on an experiment where I have needed to set a cap on the wages because in the first few iterations the prices can skyrocket which leads to heavily overpaid workers who then create new demand that causes complete collapse. I’m not sure if capping it is the best strategy and I think I will try to implement a “diminishing returns” approach.
My guess is this kind of thing wouldn’t occur in a mature economy but there would be some increase in wages using the SB/SC ratio, so demand spikes would indirectly trigger new demand spikes from the added purchasing power. Maybe society would choose to switch to averages before planning if they suspect that there will be significant demand changes.