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For your administrative offices the local component is +75% with 0 local paper supply, so even if paper is -5% globally on the Ottoman market, if you have 75% MAPI your paying 0.25*1.75+0.75*0.95 = 1.15 baseline for your paper. I think this is trying to simulate your internal market not being completely integrated.
You want to build government offices in a state with local paper, which ideally means local wood and sulfur, and local coal for atmospheric engine in the sulfur mines, and local iron for tools. And then you'll have a local steel supply for steel tools.
This confused the hell out of me too, I thought pushing down transportation costs would make it cheaper to move stuff around but it doesn't. It would be a lot more intuitive if they called this value "base market access" or something to make it clear from the name what the value does.
I might as well ask here then, what is the effect of lower transportation costs? And whom is the transportation cost paid to, in case there are no ports or railroads?
In that case, urban centers may generate some. There are several options, but the best one is cars.
And yes, the whole "local price" mechanic is utterly stupid, I've thought that building railroad networks will help there, but nope. Instead, the zeppelin tech will help reduce the local price modifier. Can you imagine that? Gigantic zeppelins, as big as entire cities, haul steel, iron, coal and wood across the entire country. o.O
Yes zeppelins making MAPI better makes no sense. Something like better communication techs like telegraphs and telephones would make more sense. Or better technologies around loading and offloading trains/ships and their improved speed/reliability.
Or have a system where states have local economies with some sort of MAPI but then ports/railroads/rivers begin to tie them into their strategic region economy.
With later infrastructure investments allowing the merging of strategic region economic zones into a single block with neighboring regions.
Could also do something like have the ability to allocation some construction capacity towards expanding the rail/phone/power grid/telegraph services to maintain the connections.
Indeed, having better technology should provide some sort of bonus. Perhaps the railroad and port upgrades could offer a little? Maybe I should simply make a mod for that. Can't expect Paradox to fix their own mess. They should've either let the price mechanics be, or made a better, balanced version to be sold as a DLC. When can we expect the game to be actually finished?