Originally Posted by
Kazamoto
A single sellers post, can disproportionally affect the average cost of an item because of the chain reaction undercutting we are currently seeing.
If there is an item with 5 stacks on the market, and a single seller undercuts by half, most of the sellers will then match or undercut that single new seller.
SUPPLY was not greatly increased, demand is unchanged, but the value as determined by market dropped significantly.
The only logic followed by most sellers now is:
Buyer wants to buy lowest price Item.
Lowest price item will sell first.
I must sell at lowest price.
Zigkid constantly believes in the powers of supply and demand over the powers of human nature.
All it takes is a single seller, even selling a single item, to cause a chain reaction of undercuts (were people smarter they would buy out the undercutter and relist, but they dont).
If there were a penalty, or anything to discourage matching or undercutting the lowest price, it would weaken human nature and give the supply/demand curve a chance.
Equilibrium is the word Zigkid uses over and over.
But when the price swings wildly, constantly, how is that equilibrium?
A note, for the most part, I sell crafting mats, ingots, leathers, lumber etc, I'm also a gatherer so my margins are good.
But when x leather which sold for 250g yesterday, and 250g last week, drops to 80g today, then 120g tomorrow, and gets back to 250g next week and stays steady, then the next day drops to 80 again, how is that equilibrium?