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Thread: RMT Solved

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  1. #1
    Player
    Pseudopsia's Avatar
    Join Date
    Mar 2011
    Location
    Limsa Lominsa
    Posts
    1,078
    Character
    Kare Ruhts
    World
    Gilgamesh
    Main Class
    Archer Lv 57
    I think one thing you need to understand is the problem with price controls.

    People who don't have an understanding of economics first reaction is to create a low price ceiling with the good intention of thinking everyone will now be able to afford items.

    This creates a problem with suppliers when the price ceiling is very low. If the price ceiling prevents a profit then the supplier will stop making that item and then there will be shortages.

    http://en.wikipedia.org/wiki/Price_ceiling
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    Last edited by Pseudopsia; 02-07-2014 at 12:09 AM.

  2. #2
    Player
    AyaneKiwara's Avatar
    Join Date
    Mar 2011
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    Limsa Lominsa
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    170
    Character
    Ayane Kiwara
    World
    Excalibur
    Main Class
    Gladiator Lv 50
    Quote Originally Posted by Pseudopsia View Post
    I think one thing you need to understand it the problem with price controls.

    People who don't have an understanding of economics first reaction is to create a low price ceiling with the good intention of thinking everyone will now be able to afford items.

    This creates a problem with suppliers when the price ceiling is very low. If the price ceiling prevents a profit then the supplier will stop making that item and then there will be shortages.

    http://en.wikipedia.org/wiki/Price_ceiling
    The other issue is with caps in place, people lack incentive to do extra, so less people crafting or gathering, since there is nothing to gain. This leads to lower supplies.
    (2)