

                  The SRE Commerce and Trade Theories

                            By: Josh Renaud



 -=> This is the third of my non-fiction files on playing SRE. This file is
best to be used by experienced SRE players of advanced play level. This is only
a guide of theories. These theories have been put to the test very few times.
Whether or not they can operate in a real-game situation remains to be seen.
However excellent real-game trade techniques can be derived from the theories
contained here. <=-

        Introduction to SRE Trade and Commerce

    If you've ever played SRE you've probably noticed them; the players with
the multi-million Net Worths. Ever wonder how they got that big? It's pretty
simple, really. They pick another player who is very small. They send that
player, lets call him Player B, lots of money. Player B purchases as many
carriers as he can (At a VERY low price) and sends them to Player A. Player A,
being a large empire, sells them at a HIGH price and makes a large profit. By
repeating this procedure (With increasing carrier amounts due to the profits),
vast wealth can be achieved in two to three weeks depending on how strict a
schedule you use, and how precise you are in the trade. This file expands on
this simple money-making procedure that is commonplace nowadays. The author has
dreamed of creating a ten-empire trade alliance that is capable of exceeding
monetary value. At face value, this statement seems ludicrous. 'How can an
alliance exceed the value of money?' you are asking. Read on... You'll find
out.

         First Theory -- The Network Matrix

    In a game not too long ago, I proposed the idea of creating a large
alliance of empires for the explicit purpose of trading. It was my intent to
have an alliance that could trade constantly, each member having defense pacts
with all the others, and trading with every member. Unfortunately the idea fell
apart. 'Wait! That's such a good idea! Why wouldn't anyone go for it?' you are
asking. Here's why: In a game situation most people are not willing to give up
hard-earned credits to finance such a network. Not only that, YOU try founding
a BRAND-NEW alliance in the midst of a war. It's hard.

    It is because of the above reasons that most of the theories in this file
can't be substantiated. They've never been tried in real-game situations, so
they are labeled theories.

    The Network-Matrix theory is basically simple. Here are it's main points.

1) Every day, each member RENEWS it's defense pacts with ALL members.
2) Every day, each member trades with ALL other members.
3) The Network is structured in such a way so that some people will ALWAYS be
small and do the job of purchasing the products.

If these three simple points are followed, one can achieve a simple network.
However, it has been found that other points are important (but not necessary)
to accompany an alliance.

1) Make it clear that the network is only a grouping of empires. Any emprie cn
join regardless of other affiliations.
2) Make it clear the network has NO political orientation.
3) Make it clear there is no leader of the network. Only a director who makes
the initial assignments and takes the job of making any important decisions,
int he event there are some to make.

And there are also other points which need to be written into network bylaws,
these dependent on the atmosphere of the game you're playing.

1) In the event an alliance or empire OFFICIALLY declares war on the network,
the network can take a vote and BECOME an ALLIANCE -with- politial orientation
that is OBLIGATED to attack the offending alliance or empire.
2) In the event of such an action, leaders must be appointed. Make it known
that the network is no longer a trade-only/non-aggressive network.
3) Any empire within the network that attacks another empire OUTSIDE the
network must do so on his/her OWN discretion. No empire, not even the director,
can take a collective offensive action unless the entire network goes to war,
as mentioned in point 1.

These bylaws make running the network more complicated, but they are necessary.
This is the structural foundation for the trade network necessary to carry out
the next few theories.

         Second Theory -- The Commerce Theory

    It is possible to trade heavily. This heavy trade will result in lots of
cash. In SRE, there is a limit of twelve billion credits (LIQUID credits) to be
held at any one time. 10bil can be held through investments (2bil a turn) and
2bil can be held on hand. It is possible, for one turn only, to hold 14bil
credits. This is very risky. The limits of trading in LIQUID credits will soon
become apparent if the network is growing as it should.

    A point will be reached where one cannot simply sell all the carriers. The
reason for this is that the net value of all the carriers SURPASSES two billion
credits, so all cannot be sold at once.

    Theoretically one can sell 2bil worth, trade it to a partner, and sell 2bil
more, trade it to a partner, etc, until all the carriers are sold. But consider
this: The partner can only process 2bil a turn. If he has more than 10bil
waiting for him after a day, credits will be lost. Why? Simple: You can process
2bil a turn. At 5 turns a day, the most you can handle SUCCESFULLY is 10bil a
day. If there are more than 10bil credits, they will flow over to the next day.
But there will be another set of credits the next day. So evenutally any
credits over the limit will be skimmed off. Theoretically all credits can be
recovered. But to do that requires NOT trading for a day, which will upset the
whole flow and growth of the network.

    When this point is reached, LIQUID CREDITS ARE VALUELESS.

[Side Note: Liquid credits are those credits which are in MONETARY form.
Product/Capital can be referred to in it's credit VALUE, but remember that
these items are not in a LIQUID form.]

    The reason the liquid credits are valueless is because there is too much
too handle. The way to overcome this is by finding another medium of exchange.
Rather than use credits as the medium of exchange, soldiers could be
substituted. It is here that the theories become more difficult to understand
and where they split apart.

         Third Theory -- Medium of Exchange/Soldiers

    When the Limit is reached, the network can begin to sell carriers
(converting them to liquid credits) and can then purchase soldiers. The
soldiers become the medium of exchange for use through trading. However this
medium of exchange is risky.

1) Different versions of SRE regard soldier price-control differently.

2) Some empires may have unbalanced militaries which will result in the LOSS of
value through selling soldiers.

         Fourth Theory -- Medium of Exchange/Hierarchial

    When the limit is reached, one can begin hierarchial trading. Hierarchial
trading is simple. Each empire can buy portions of military wich cause the
OTHER portions to be cheap. Example:

Soldiers- 0
Fighters- 10mil
HCs- 10mil
Carriers- 10mil

Soldiers will be CHEAP while the others will be expensive. If each empire
offsets their militaries, various values can be attributed to products. By
organizing them, it is possible to trade hierarchially. This means trading
carriers for HCs, HCs for defense stations, defesne stations for fighters, and
fighters for soldiers. The Soldiers are then sold for carriers.

After this, one will notice an increase in the original amount of carriers.
This is almost true commerce-trade. the only reason it ISN'T true commerce is
the fact one must use liquid credits when selling and buying.



This is a major theory. Noone has ever successfully reached the point where
virtual commerce-trade is successfully utilized. Whether it could actually work
is unknown. If it COULD be reached, then another major step in SRE's evolution
would have taken place. Unfortunately it is impossible to just BARTER in SRE.
(Trade product for product without having to sell antything for liquid credits)
A method of barter would allow a network to successfully utilize commerce-trade
when the Limit is reached.


These theories are not guaranteed. If they work, that is fantastic. Incredibly
awesome. Even if they DON'T work as outlined, terrific new groundwork has been
layed for future trade. These theories could become the basis of more solid
trade processes. Keep these in mind and let them open you up to new trade
oppurtunities.


                             -=) Josh Renaud (=-


    Josh Renaud is probably the best-known writer on SRE in St. Louis. His SRE
Text Series has been recognized by three online magazines, and are the subject
to much approval. He also has two other SRE-specific files detailing strategies
on advanced play, and a guide on how to build a successful empire for
beginners.
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   Copyright (c)1994 GrossWorld Publishing Company, all rights reserved.
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