Feedback Loops in Game Economics

Empowerment, deadlocks, and a small mathematical analysis

A game's economy is an internal system within a game responsible for all the mechanisms related to the game's resources [1]. In the game’s economy, the term resource is very open and comprises concepts from collectible items (such as coins) to the player’s journey itself. In general, a resource is any concept that can be measured numerically [1]. (For a more in-depth analysis on resources, refer to this previous article).

Resources are handled by the game's economy using 4 basic mechanisms (or 4 pillars), which are: Sources, that create resources out of nothing according to a production rate; Drains, which eliminate resources from the game permanently; Converters, that convert resources into others of different types according to a conversion rate; and, Traders, which trade resources among different entities in the game, such as Players or NPCs [1]. (For a more detailed study on the 4 pillars, refer to this previous article).

This article discusses how the relationship between these mechanisms can either empower or weaken a player's progress through mechanisms named feedback loops. Moreover, it is possible to study and improve games by understanding these concepts, especially balancing and adding features.