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Patch 1.5 introduced a number of major changes to the game, most of them good, but some things are a bit out of balance. Like for example: some pops are too satisfied in their subsistence farms and would rather stay there than work in a highly productive factory.
I expect the modding community to fix some of this stuff soon, if they haven't done so already.
I guess the question then is if there's a benefit to lower transportation prices..
I’ve just realised I completely misunderstood your original post. I thought you were referring to how un profitable railroads are hence why my solution was to subsidise.
Regarding private sector building: I have that feature turned off in the game set up menu so that I control 100% of what gets built and where.
Sry if my post does not help the OC, but regarding transportation prices: As far as I understand it they are an input good into some industries (mines, logging camps, plantations) like any other. So cleary a low transportation price is beneficial because it allows said industries to produce their goods cheaper (and in return hopefully help to keep them fully stuffed, because the productivity is better).
1. They provide infrastructure relative to the employment level, but this is not monetized in any way, which means that they need to be subsidized.
2. At the same time, they provide "transportation" as a consumption good and as an input good for industries. However, this transportation value does not neccessary match the infrastructure value, and not all industries even need "transportation". Often, you'll get huge surplusses, dropping the price to the min level.
No wonder that the rudimentary AI which works by "predicted earnings" has trouble scaling railroads. As long as that's not fixed, use the manual construction mode.
I see, sorry, hadn't my coffee yet. Though this should mean that railroads do get built automatically if local transportation price is +75%. I've seen this happen.
True, as long as the proper production method is assigned I suppose..