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Play business simulation game Virtonomics

TECHNOLOGY

All production enterprises are characterized by a certain technological level.

Technology level influences labor efficiency and goods quality. High technology level decreases energy consumption, improves quality and labor productivity. On the other hand, high technology level imposes higher demands on staff qualification and equipment quality.

The maximum technological level for the introduction of a certain type of enterprise is determined by the technological level available to the company owning the enterprise.

There are 2 ways of technology introduction:

• Buy a technology (or develop it in the laboratory) and introduce it to any enterprise of a certain kind;
• Buy a license for technology (a right to introduce a technology in a certain enterprise).

Price of increase in technological level consists of two parts: cost of technology and cost of introduction. When you buy a technology, the first time you have to pay both for the technology and for its introduction, but if later you decide to raise technology level for another enterprise of the same kind, then you must pay for technology introduction only. Usually, players purchase license in case if they don't have enough money to purchase a technology, or in case if technology purchase is not reasonable (for example, the player has only a few enterprises of similar kind, so he'd prefer to buy a license).

When you purchase a high-tech enterprise from another player, its technology does not become the property of the company, although it is used at the acquired enterprise. Therefore, if you want to establish this technological level already at your other enterprise, you will again have to pay for both the purchase of the technology and its implementation.

The player can independently research higher technological levels in laboratories.

LABORATORY

General Information

You need laboratories for technological research, which can bring you new technologies of higher level.

Building Laboratory you need the following:

• Choose its size.
• Hire scientists.
• Buy equipment (devices).

Maximum possible number of scientists and equipment depends on the size of your laboratory. Available technology level also depends on the size.

Technology level will require the equipment of certain quality. Moreover, equipment quality defines minimum qualification requirements for staff of laboratory.

In case if you want to work with technologies and inventions of level 5 and higher, laboratory must be attached to a working factory (80% of its efficiency or more). Factory profile and technology level must correspond to the current research.

Minimum size of required factory depends on the level of explored technology:

Level	Maximum number of scientists	Available technology level	Remarks
1	10	Up to 4	-
2	30	Up to 8	Starting from technology level 6, a factory (farm, mine, etc) of minimum size is required
3	100	Up to 13	From technology level 9, a factory size 2 is required
4	300	Up to 19	From technology level 15, a factory size 3 is required
5	700	Up to 25	From technology level 20, a factory size 4 is required
6	1000	All levels	From technology level 26, a factory size 5 is required

Research

There are three research stages:

Preliminary research, hypothesis is formed

The basic duration of preliminary research stage depends on the current technology level (up to level 8 it is 3 weeks, then longer). Even if you increase the number of scientists it won`t speed up the research, usually it slows down because of low efficiency of laboratory. The number of hypotheses depends on the skill "Science research" level of Top manager. Moreover, each hypothesis has a probability of success and a duration modifier.

In case you've bought one or several technologies of last 5 levels, the first stage will be longer (for ½ of duration of first stages of missed technologies). In case you have not investigated previous levels of technology the duration of the first stage will be longer — in proportion to the duration of missed investigations.

Research, hypothesis processing

During second stage you`ll have to choose one of hypotheses then scientists will perform research with a possibility of success which you already know.

In case of failure, you can repeat this research. The possibility of success will be higher by 1%. In other words, each hypothesis can become successful in the end.

Basic duration of hypothesis working out depends on technology level and possibility of success (you`ll need more time if you want to work out more reliable hypothesis).

Additional number of scientists will speed up the work. Low efficiency of laboratory will slow down the work.

Industrial testing

The final third stage of research: testing and industrial trial of invented technology.

Duration of this stage depends on technology level. Additional number of scientists will speed up the research.

Technologies of level 5 (and higher) will require a factory attached to the laboratory. Profile and technology level of this factory must correspond to the research.

Duration of this research depends on laboratory efficiency, as well as factory efficiency.

Technology levels

Level	Scientists required (min)	Goods quality (max)	Remarks
2	5	2.46	-
3	10	4.17	-
4	10	6.06	-
5	15	8.10	Required level 2 of the lab
6	15	10.27	Required a factory attached to the lab
7	15	12.55	-
8	30	14.93	-
9	40	17.40	Required level 3 of the lab
10	40	19.95	-
11	60	22.58	-
12	60	25.29	-
13	100	28.06	-
14	120	30.90	Required level 4 of the lab
15	150	33.80	-
16	200	36.76	-
17	250	39.77	-
18	300	42.84	-
19	360	45.96	Required level 5 of the lab
20	420	49.13	-
21	500	52.35	-
22	600	55.61	-
23	700	58.92	-
24	700	62.27	-
25	700	65.66	-

TECHNOLOGY MARKET

Any player who has invented a technology in the lab, can put it up for sale. You can sell only your own inventions, you can't re-sale any purchased technology. There are no restrictions for the technology price — this is a market price. However, the number of current technologies for sale for one enterprise is limited — minimum 10; maximum — according to the current «Research» qualification level.

Market price of the technology will be defined at the time of the game update, and it won't change during the game day. Market price is calculated on basis of information about all technologies of this kind that have been put up for sale.

Profit from technology sale is calculated for the last game day, considering prices and participants of last day auction. Profit is distributed among all participants (technology sellers) depending on the declared price.

When putting a technology up for sale you have to pay a commission fee equal to 1% of declared price. If you increase sale price, you must pay a commission fee equal to 1% of difference between declared and sale price.

Any player who has invented a technology, can sell a license for this technology use. License will let certain enterprise to introduce this technology. Number of licenses for sale is proportional to «Science research» skill with coefficient = 3.

TECHNOLOGY LICENSE MARKET

Technology license market provides a possibility to introduce a technology to a single production subdivision.

Applications for introduction

The customer applies for an introduction of a technology he needs for the certain production subdivision. Maximum price must be divisible by 1000 and limited by current cash of the customer. The customer pays for the service and introduction expenses. Negotiations are closed. Customer has all information about the previous offers and negotiations, but no information about current propositions. Number of offers is unlimited, however total amount of offers must not exceed total amount of Customer's currency. Attention! You have to pay a fine in case if you introduce license to a factory of a clone with a purpose of start capital transfer, etc.

Kinds of applications

• Competitive Price is declared: the maximum price that the customer is ready to pay for introduction.
• Noncompetitive Price is not declared: the customer is ready to buy a license for market price, which is formed during the bidding with competitive offers.
• Short-term In case during bidding the application didn't meet requirements as a competitive, then it becomes noncompetitive.

Sellers offers

Inventor of technology (Sold) publishes a proposal for self-installation technology. You have to be an owner of technology in order to trade. The minimum price should be a multiple of thousand. Negotiations are closed. Seller has all information about the previous offers and negotiations, but no information about current propositions of competitors. The total number of limited skills in scientific research (3 level skill in the field of «research»). Attention! You have to pay a fine in case if you introduce license to a factory of a clone with a purpose of start capital transfer, etc.

Kinds of offers

• No bids Minimum price is declared. Bargain is possible only at the declared price.
• With bids Minimum price is declared. Bargain is possible at the average price between seller's offer and customer's application.
• Noncompetitive Price is not declared, introduction will be done at the average price formed during bidding.
• Short-term In case if during the bidding the application didn't meet requirements as a competitive, then it becomes noncompetitive.

Bidding

License bidding and enterprise upgrade will be performed at the time of the update, according to the results of applications and offers received. Bidding is divided into 3 stages.

First stage

All competitive offers are marked as “no trade”. The first served are the ones that are cheapest at SELLER'S PRICE (the lowest price) offers for sale complying to the most expensive (the highest price) purchase applications, provided that the price fits into the maximum threshold set by the Customer.

Second stage

All competitive offers remaining after the first stage are traded. The first to be satisfied are the cheapest (with the lowest price) offers for sale matching the most expensive (with the highest price) purchase applications AT THE AVERAGE PRICE between the price of the buyer and seller.

Example of the 2nd stage: buyers formed applications for the installation of technology of the 2nd level at the bakery with the following parameters: 100 applications at a price not exceeding 2000, 50 applications at a price not exceeding 1000. 1 application at a price of 10. In turn, sellers formed applications : 20 applications for the price of 100, 10 applications for the price of 500, 100 applications for the price of 1000, 1 application for the price of 2000.

Transactions will be carried out as follows: First of all, demand requests with the maximum price will be processed due to offers with the lowest price: of the 100 requests for demand at the price of 2000, 20 applications with the price of 100 at the price of (2000 + 100) / 2 = will be satisfied 1050, 10 bids with a price of 500 at a price of (2000 + 500) / 2 = 1250tr, 70 bids with a price of 1000 at a price of 1500. Of 50 bids for demand of 1000, 30 bids of 1000 will be satisfied. One bid for demand at a price of 10 not will be satisfied, as there are no applications for proposals with a price less than or equal to 10. 20 applications for demand (out of 50) at a price of 1000 will not be satisfied, due to the limited number of applications for offer. From bids, bids with a price of 2000 will not be satisfied due to lack of demand.

Third stage

Uncompetitive and short-term offers, left after the first two stages are considered. All the required offers are going at the same similar average price of competitive bargains. In case if there is no bargains for competitive offers, then there is no possibility to define the average price and there will be no bidding for uncompetitive offers.

Examples of license market

Example 1

The customer has a fence-building factory with 1 level of technology. He wants to produce super-fences. For this purpose he needs to introduce a level 10 of technology, i.e. to buy a license. The customers composes an application: I want to introduce 10 technology for 10 000 000 or less*. It means that the customer has composed a competitive and not short-term application.

• Hereinafter: we are talking about the price of license. The cost of introduction is not the subject of bidding, it will be withdrawn in a common way.

In the same time the seller of a (technology) license composes an offer: I'\ want to sell 10 technology for 7 000 000 exactly. So, this is a competitive, not short-time offer without bidding. This is a basic, the simplest example of a bargain. The seller will sell a license for 7 million both the seller and the customer will be satisfied.

Example 2

Two customers: the first one is ready to buy for 10 million, and another one — for 15 million. Two sellers: one sells for 7, another sells for 10. The same kinds of offers and applications. As result: the customer who was ready to buy for bigger price will buy for 7, and another one — for 10. This is logically correct — the one who took the risk wins more.

Example 3

Greed stimulates commerce. Let's suppose that seller is ready to pay more than 7 millions. But he doesn't know how much more or he knows, but hopes that there will be even more generous customer in the bidding. In this case offers «with bids» appear. Let's suppose, that applications are the same as before, but the offer is: «sell for 7 million or more». In marker terms this is a competitive, not short term offer with bids. As result: the one who was ready to pay more, will buy for (7+15)/2 = 11 million. The customer is happy because he paid less than he had planned. The seller is happy because he sold at higher price.

Example 4

About noncompetitive applications. It means that a customer wants to buy a license at average market price, or to buy for 10 millions or less and if there will be no suitable offer - at average market price (short-term offer). This is a very risky application — because the average price might be unpredictable. But this offer is reasonable: 1) if all know that there are many offers and will be enough for everyone, so they don't want to lose a bargain because of stupid discrepancies in the figures; 2) if they don't want to make price unreasonably high; 3) if they are not very familiar with the market, but really need a license.

The example. One customer composes a short-term application for 7 million, second customer composes a common application, third own — noncompetitive. Offers: three at 10 with bidding and turning into noncompetitive. Result: on the second stage the customer, which has offered «up to 14 million» will get the license for (14+10)/2 = 12 million; on the third stage both left customer will get the license for average market price = 12 million. Again, all happy. But the first customer paid more than he wanted.

Example 5

Sellers make noncompetitive offers almost on the same reasons: to be sure that they can sell it, not to rise prices too much or when they are not very familiar with the market.

Example. Applications are the same as in previous example. Offers: «not less than 10 million», «not less than 20 or noncompetitive» (short-term) and simply noncompetitive. Result: on the second stage the second customer buys it from the first seller for (14+10)/2 = 12 million. Other customers will get it for the same 12 million. In case second seller had a non-short-term offer, he simply wouldn't sell anything. Bidding closed. Nor customer, nor seller sees the current market supply. They only see results of previous bidding. Bargain will be fulfilled during the update.

RATING OF TECHNOLOGY ACHIEVEMENTS

This rating shows how successful the companies are in field of their own science research.

The calculation takes into account the best (with the highest level) of invented technologies in each of the technological niches. Rating score is considered as the sum of the squares of the best technology of the companies, plus a bonus for the technological leadership, is also a box-level, equally divided among all the companies-leaders.