The Price History in the New Market System Needs to be a Lot More Than 20

[UnsayMoon]

The only thing price history offers, is a quick way to see what items may be worth right now. However, being able to see every price that ever was generally leads to a downward spiral of pricing, especially when you dont have blind bidding.

Undercutting is the only way to compete, and so prices get insanely low, until people stop selling the item, but even when they do, they are still effected by the old price.

All it does is give newbs to selling their item a price point when no one else is selling the item, is that really worth the hassle?

Um yeah, it's called supply and demand. It's kind like the entire foundation of economics....

[Physic]

Um yeah, it's called supply and demand. It's kind like the entire foundation of economics....

supply and demand doesnt come with a manual in real life. Companies spend great amounts of time and effort researching price points, and trying to figure out how much a service is worth, they also have to pay someone to research the going rate on any good and service, breaking also down to region, and trends, they dont have an automatic guide, and they probably wouldnt want one, because it would essentially fix prices and not give them the elasticity they would like to see.

also, supply and demand when given full transparencies, kills most businesses and leads to monopolies and horizontal monopolies. Unaided Target or something target like will kill all other businesses that are smaller simply because of ecomony of scale, and a higher overall capital

economics isnt some simple thing that only has two variables, and will automaticly work itself out, it needs a fair amount of law and checks and balances to exist. And its a lot harder in a videogame, which doesnt have a lot of the factors that mitigate it.

[Roaran]

Supply and demand doesnt come with a manual in real life.

Well, it sort of does. If you bring something to market, you are the supplier. Now, it took some effort to produce the materials or item you want to sell; and, because you're not supplying the economy of items for charity or the goodness of your heart, you seek to be compensated for your effort. Thus, you place a price on the item yourself in proportion to the effort you put into producing the item. The money price is just a representation of all the things you think you should be able to recieve for your effort. If you do not feel your effort is being rewarded, (the price you place on the item is higher than what others are willing to buy it for) you will stop supplying the item.

Most people would call this 'common sense' but it always ends up being quite a lengthy explanation.

Companies spend great amounts of time and effort researching price points, and trying to figure out how much a service is worth, they also have to pay someone to research the going rate on any good and service, breaking also down to region, and trends, they dont have an automatic guide, and they probably wouldnt want one, because it would essentially fix prices and not give them the elasticity they would like to see.

Well, companies do spend some time and effort researching their pricing, yet it's fairly simple-minded. They seek to maximize profits. If you've ever made it through calculus, there's a great deal of time spent on maximization, and it is not that complicated at all. The problem lies in knowing beforehand how many people will want your service and at what price. A business already in operation has a wealth of experience to draw from, and can actually create formulas that accurately predict certain fluctuations.

also, supply and demand when given full transparencies, kills most businesses and leads to monopolies and horizontal monopolies. Unaided Target or something target like will kill all other businesses that are smaller simply because of ecomony of scale, and a higher overall capital

It is true, that most businesses crash and burn in a free market. If we all started a business tomorrow, what is the best rule to determine who should stay in business and who should not? In a free market effeciency is the rule. And because of that one rule, the standard of living in America rose above all other countries, and, subsequently, the rest of the world has started to follow.

economics isnt some simple thing that only has two variables, and will automaticly work itself out, it needs a fair amount of law and checks and balances to exist. And its a lot harder in a videogame, which doesnt have a lot of the factors that mitigate it.

And I don't really know if this is true. The world left to its own operations, without harmful disturbances (government or criminal), naturally provides an environment condusive to economic activity. Replicating it must be difficult... despite its flaws FFXIV has one of the best markets of any MMO..... I just wish I could take my large wad of gil and put it to use...