Penalize players who adjust their prices too frequently

[anceru]

I still think they should have implemented the blind bit system from FFXI's Auction House. It seems much better geared for an MMO.

[Wazabi]

Blind auction restricts information, thus decreases efficiency. Free market without restrictions are usually the way to go for mass trading. Think about the buyer's side of the market for all complaints on undercutting....and that's why I love weekends when all the undercutting activity goes haywire.

[Berani]

I am just stating that some items are undercut WAY too much. But seeing mythril ore drop from 150 a piece to 60 in 1 day?

Hey, I don't like it when my items are undercut 75% either. But I figure I set my prices too high and adjust for what the market will bear, provided the rate is not less than the cost of materials plus a small profit.

Markets are fluid and what matters is the price the market will actually bear, not what you think your product is worth.

You're a miner. If the profit from your sales covers the cost of your gear repairs, I fail to see a problem. Bars turn a higher profit than unprocessed ore. Take up blacksmith or armorer if pixellated profits are that much of a concern. As previously stated, the economic (de?) stabilization that we are seeing across the servers is a result of this action: http://na.finalfantasyxiv.com/lodest...8d1f1df953c121

[Berani]

Liquidity in market transaction is generally a good thing in that it drives prices towards equilibrium faster, towards stabalization, and reduces stock holding risk. However, it also serves to propagate crisis that are derived from other factors such as shocks in money supply....but in this case it was not the market liquidity that causes the de-stabalization, but the shock in money supply.

I tried not to put out too many technical terms on this, but then I would have to probably write a whole chapter to explain it in plain english.

A long one, most likely.

(I worked for an economist the year between high school and joining the military )

[anceru]

Blind auction restricts information, thus decreases efficiency. Free market without restrictions are usually the way to go for mass trading. Think about the buyer's side of the market for all complaints on undercutting....and that's why I love weekends when all the undercutting activity goes haywire.

I see you point, but I disagree completely. I think the "decreased efficiency" is completely acceptable. I question whether we should aim to simulate real world economics to a degree where it hurts more than it helps. Because in that kind of economy I believe RMT will win (under the assumption that SE will deal with them as they have done up til now).

[bwalker36]

Restricting information is not a good thing. And the blind auction system in XI supports sellers more than anything which I don't like. Undercutting in this game is a result ofsupply shocks and also people just not being smart. It was pointed out above somewhere that a single guy comes in at 50% and then everyone decides to follow suit. Yes it ruins the market for a while but then if the price is truly far from its equilibrium at current Supply/demand levels you will see the market adjust back up. it may not recover fully but thats why tings ahve 50 day moving averages so you can see its trend.

Martkets are volatile, there is no reason they shouldn't be. I think that the markets here have a tendency to be much more volatile then they need to be but its do to supply shocks and people not looking at the information available and making a smart play. I have no doubt in my mind that as the community matures and thus the markets with them, the supply/demand will level out and volatility and undercutting will fall violently.

a 50% fall in price once in a while do to a large supply increase is not a big deal, nor is it rising high on a Friday because demand is still there but weekend supply hasn't hit yet. I would like to see a listing fee if only to stop people from making stupid decisions. If i see allagon pieces on their for their vendor value i will just cry a ton.

[Esharii]

Buy the undercut item and put it back up for a profit.

Mhmm, I frequently look over the boards for items I know don't sell all that quickly and post up my own items forcing massive undercutting. Then buy up the items and resell them later.

[bwalker36]

Mhmm, I frequently look over the boards for items I know don't sell all that quickly and post up my own items forcing massive undercutting. Then buy up the items and resell them later.

Haha that is evil yet awesome, Good thing its not the real world cause that type of price manipulation would land you in jail haha.

[avecha]

I'm not desperate to sell but i've undercut by 50 gil etc and my items are usually gone within minutes while the same other sellers stuff is still up.

[Wazabi]

I see you point, but I disagree completely. I think the "decreased efficiency" is completely acceptable. I question whether we should aim to simulate real world economics to a degree where it hurts more than it helps. Because in that kind of economy I believe RMT will win (under the assumption that SE will deal with them as they have done up til now).

An efficient economy simply means getting the goods to the hands of people who are willing to pay a certain price for. The more players are able to buy goods at their desired price, subjecting to supply, then the more efficient the economy is.

Say in an efficient economy, 100 players are able to get their mats at the price of 100g. In an inefficient economy where items are selling at 150g and only 50 players are able to get their mats at that price, the market is comparatively less efficient. How can that be a good thing?

If I understand you correctly, you're saying that you would rather have a less efficient economy in order to tackle the RMT?

RMT is an external factor...and there are ways to deal with them without touching on the economy. If anything, a market with less constraint diminishes the power of RMT. Don't take my words for it, check with any economics professional or game theory expert...Information asymetry generally only benefits the seller...and that's why blind auction is only used in small scale bidding like corporate contracts and government projects.

Haha that is evil yet awesome, Good thing its not the real world cause that type of price manipulation would land you in jail haha.

I think buying up stocks at low price, hording it, then selling it at higher price is legitimate. The only thing that would be illegal to do is hording essential goods at times of crisis or colluding to monopolize the market.

I've done the same thing with the HQ Chocobo feathers in Malboro...bought up all the stacks at 100-200, then resell them at 1000+ at 2-5pc a time. Manage to stay in control for 3 weeks, forcing out competitors. Then the server transfers and new wave of players came in and flooded the market, pushing it back down to 200. I still have 2 stacks with me, but I've already made plenty of profits from it.