Undercutting

[jomoru]

This thread is new and unique! I have never seen it before and am glad it was brought up!

[Giantbane]

Think of the market board as just another form of PvP. Undercutting is a great way of encouraging your competition to either find another market or enjoy reduced profitability

[DefendPopPunk]

This thread is new and unique! I have never seen it before and am glad it was brought up!

Sarcasm is new and unique! I have never seen it before and am glad it was brought up!

A person making a huge undercut that gets bought does not completely destroy the prices. One outlier does not make a trend unless the other sellers make it so.

Wow, no crap. That's exactly it. lol. This guy undercuts this guy and that guy undercuts that guy. It doesn't take much to understand how a cycle like that destroys prices. You make it sound like there are just two people selling at one time, the guy selling it at the sales history price and the guy undercutting it by 50%. Not the case most of the time. But those outliers reduce the price by a lot, and then get undercut by a few gil, then they undercut by another large amount, etc. Yeah I'm making exaggerations, assumptions, call it what you will, but you've done the same as well. The point is, there's almost never any reason to undercut by a vast amount, regardless of the "opportunity" it creates for other sellers. lol.

[Giantbane]

Wow, no crap. That's exactly it. lol. This guy undercuts this guy and that guy undercuts that guy. It doesn't take much to understand how a cycle like that destroys prices. You make it sound like there are just two people selling at one time, the guy selling it at the sales history price and the guy undercutting it by 50%. Not the case most of the time. But those outliers reduce the price by a lot, and then get undercut by a few gil, then they undercut by another large amount, etc. Yeah I'm making exaggerations, assumptions, call it what you will, but you've done the same as well. The point is, there's almost never any reason to undercut by a vast amount, regardless of the "opportunity" it creates for other sellers. lol.

If the market is able to be collapsed so easily then it wasn't all that stable to begin with. The price was being artificially inflated by an unspoken agreement between sellers to not really compete on the price.

What you're trying to advocate is to have more people participate in noncompetitive selling practices in order to keep your own profits high.

[DefendPopPunk]

If the market is able to be collapsed so easily then it wasn't all that stable to begin with. The price was being artificially inflated by an unspoken agreement between sellers to not really compete on the price.

What you're trying to advocate is to have more people participate in noncompetitive selling practices in order to keep your own profits high.

My profits? You're assuming I sell anything lol. No, what I'm advocating is for people not undercutting by ridiculous amounts for no good reason other than "gotta sell NOW!" I couldn't care less about Gil on this game, I have more than I really even care to use. You don't need much. I just empathize with people like the OP that kind of scratch their head at this type of behavior. I don't think you need to undercut by a large amount to remain competitive.

[Giantbane]

My profits? You're assuming I sell anything lol. No, what I'm advocating is for people not undercutting by ridiculous amounts for no good reason other than "gotta sell NOW!" I couldn't care less about Gil on this game, I have more than I really even care to use. You don't need much. I just empathize with people like the OP that kind of scratch their head at this type of behavior. I don't think you need to undercut by a large amount to remain competitive.

Fine, not you in particular, but for anyone really concerned that undercutting is "ruining the market" (like the OP), then there wasn't much of a market to begin with if it can be ruined so easily.

[CYoung187]

My profits? You're assuming I sell anything lol. No, what I'm advocating is for people not undercutting by ridiculous amounts for no good reason other than "gotta sell NOW!" I couldn't care less about Gil on this game, I have more than I really even care to use. You don't need much. I just empathize with people like the OP that kind of scratch their head at this type of behavior. I don't think you need to undercut by a large amount to remain competitive.

You keep trying to create scenarios where some undercutter ruins the market. If a market is going to drop that easily that is a supply/demand issue. What you describe is far from common occurance, and even the OP'S description is bland since we don't know the sale history.

I guess i should throw in some lol wow smh omg to try make everyone sound dumb also.

[DefendPopPunk]

You keep trying to create scenarios where some undercutter ruins the market. If a market is going to drop that easily that is a supply/demand issue. What you describe is far from common occurance, and even the OP'S description is bland since we don't know the sale history.

I guess i should throw in some lol wow smh omg to try make everyone sound dumb also.

Or try not to take it so personal, that might help. I'm not creating scenarios, mostly just speaking about what I've observed. Good for you that you haven't seen the same things, I guess? Yes we're all qualified economic advisors here so we're well versed on the concepts of supply and demand, but I always appreciate that one being brought up in threads like these. Once per page should do it. Oh...and lol.

[jomoru]

Sarcasm is new and unique! I have never seen it before and am glad it was brought up!

What? Either I'm serious and this thread is serving a point or if I'm sarcastic then this thread is a waste of time because we had the exact same thing last week.