Quote Originally Posted by Kilta_Firelotus View Post
Btw an AH should not be a price determiner. Make your own price up. (which is how stuff start anyway) I played ffxi when they added new stuff on the AH like all the lvl 78 gear.... they were 50K a peice before stablizing. Make up your own price and see if people buy it. If not lower the price a bit. Items rarely stay "rare" after a while in mmo.
Making up your own price doesn't take into account the realities of compromise between buyer and seller. Seller can set whatever price they want, but it won't sell unless some buyer is willing to pay that price. Any market system should serve to facilitate bringing buyers and sellers together to exchange goods. An actual auction can serve this purpose.

And yes, agree 100% items don't remain rare. When items become common enough to become a commodity, they'd move to the markets, since people know how to price. Then the undercutting comes in, bringing down the price to some sort of equilibrium.