Quote Originally Posted by HurtigeKarl View Post
Casual sellers can list at 16842 to be on par with dungeon-grinding income-wise. Of course, if they are dumb and aim for far higher profit margin per sale rather than looking at their profit per time invested, it will lead to situation where they try to compete with the 1-gil undercutters at the higher prices but utterly fail at doing so. Then they come to forum and complain about how people are undercutting them.

Let's say the casual sellers as a group only post a total of 4 times per day at 16842. That wouldn't meet the total demand of 10 per day at the price range of 3000-50000, which leaves 6 sales for the 1-gil undercutters to charge far above the equilibrium price.

How can you test that the 1-gil undercutters are at that point charging above equilibrium price? Well, put a bid at 35000 gil and watch how they like cockroaches start 1-gil undercutting you.

A major point is that the sellers are not the victims at all in the current system. They are those who benefit from this system, both the 1-gil undercutters and the casual thinking players.

The victims are the customers. Well not every customer, because sometimes a player puts a bid below equilibrium price, but in most cases they are.
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As for auctions: that's why well designed auctions either officially or unofficially implement a rule stating that the increment of a bid should at least be X% of the opening price or Y% of the previous bid. A such rule would encourage people to act now rather than later, analagous like having Z% of inflation encourages people to "use" their money now rather than let it rot in their home.
out of those theoretical 10 people willing to buy between 3,000-50,000. they aren't all going to buy anything below 50k. some of them may have a limit where they are willing to spend 3k, some might be willing to spend 10k, some might be willing to spend 20k, some might be willing to spend 50k. as you get high and higher in person, there will be less people willing to pay that price. just because its listed at 49k doesn't mean all 10 will still buy it. people can always look at the history as well and notice there's a huge price gap between 16.8k and 39k to know they're getting stiffed and will wait for lower prices. Hence why the demand curve is downward sloping.

As long as people can freely adjust prices it can reach equilibrium faster. If there's a tax/limit on price adjustments it'll actually slow the process of reaching equilibrium and cause the market to perform less efficiently and it won't mirror current market prices as well, and cause more price gaps.

Yes auctions create a minimum for incriments, but there are also auctions that don't. people will still do this in those auctions as well because its a waste of time to go back and forth. thats why people will undercut by more than 1 gil, so that way they can drive away more competition so they won't need to check back constantly which will actually save them time, time to make more money.
Quote Originally Posted by Orophin View Post
Not sure where you're getting this 3k per minute figure. I certainly don't make 90k running AK in 30 minutes.
it's an arbitrary thing he came up with to fit his scenario.