(edited by OmniPotentes.4817)
My suggestion on how to fix the economy.
you know, that actually sounds good to me really.
It can’t hurt us anymore.
It would help out a little bit.
actually power traders counter inflation by siphoning hundreds, thousands of gold a day out of the system via fees.
Inflation is caused by mobs dropping gold. As more and more gold is added to the game, the value of each gold goes down. The only way to stop inflation is to make mobs drop nearly zero money (or at least less money than is being taken out via waypoint fees, repair costs, and TP fees).
To fix the gaming economy, Anet has to first stop trying to mimic a real life economy. Otherwise you have 1% controlling the 99%.
actually power traders counter inflation by siphoning hundreds, thousands of gold a day out of the system via fees.
Inflation is caused by mobs dropping gold. As more and more gold is added to the game, the value of each gold goes down. The only way to stop inflation is to make mobs drop nearly zero money (or at least less money than is being taken out via waypoint fees, repair costs, and TP fees).
The amount of gold that power traders siphon through the TP is negligible compared to the influx of gold required to keep up with prices set and manipulated by them. Which is indirectly a result of their trading behavior. If they didnt set prices so high most players wouldn’t have to farm content 24/7 to be able to afford the goods thay want like precursors and lodestones or ectos.
Besides I don’t think my suggestion would lead to a decrease in TP transactions. People would still be buying items. Only now at more affordable prices.
(edited by OmniPotentes.4817)
Who are you to dictate people how to play the game? Some people enjoy playing the markets and using an MMO as an economic simulation. Just because you can’t/don’t want to do it it shouldn’t be doable?
Your suggestion would lead to people having to grind for their money. Sounds amazing.
actually power traders counter inflation by siphoning hundreds, thousands of gold a day out of the system via fees.
Inflation is caused by mobs dropping gold. As more and more gold is added to the game, the value of each gold goes down. The only way to stop inflation is to make mobs drop nearly zero money (or at least less money than is being taken out via waypoint fees, repair costs, and TP fees).
The amount of gold that power traders siphon through the TP is negligible compared to the influx of gold required to keep up with prices set and manipulated by them. Which is indirectly a result of their trading behavior. If they didnt set prices so high most players wouldn’t have to farm content 24/7 to be able to afford the goods thay want like precursors and lodestones or ectos.
Besides I don’t think my suggestion would lead to a decrease in TP transactions. People would still be buying items. Only now at more affordable prices.
/facepalm. economics 101: you cannot sell something for more then its market price. “but x is to expensive for me!” I didn’t say your price, I’m talking about the market price. if something goes above market price, people will just not buy it, and farm/grind for it instead.
also, have you thought about the problems it would create? for example, I could no longer be able to give a friend anything I buy off the trading post. or what if I overbuy (either from a typo or overestimating costs) am I just stuck with the excess? they would also have to duple the amount of storage space so you have one slot for account-bound stuff and one for the non-account-bound stuff? and what about the stuff already in the power traders inventory? is it retro-active? if not expect a huge surge in price for stuff as they would buy up inventory in expectation of the change. or do they just not announce it and screw over the people who are just “day trading”?
this suggestion pops up every now and again. it’s not worth the hassle to implement.
(edited by kitanas.3596)
I think we need to define “inflation” if this thread is going to get anywhere.
There are two definitions. One is simply “rising prices”. The other is the expansion of the money supply.
The second is the older of the two, with rising prices being a possible result of the expansion. Even there, however, inflation is never uniform. Prices rise first in those areas the first to receive the money spend it into, and then into the areas their suppliers spend their extra money into, and so on.
If the money supply is static, rising prices indicate one of two things.
First, it could indicate some problem of supply. For whatever reason (crop failure, criminal activity, etc.) supply just isn’t what it used to be.
It could also indicate some increase in demand. Consumer tastes could have shifted. Some new use could have been discovered. Some great need could have manifested (ie medical supplies and construction materials after a disaster, or munitions after the outbreak of a war) It could simply be the result of population increase relative to the overall supply of goods.
However, if the money supply is static, greater spending in one area means, by definition, in the absence of the drawing down of cash balances, lesser spending in other areas. A price spike in one area leads directly to lower prices in all other areas.
In GW2, monster drops are where money comes from. This is very different from the real world, where the whim of some central authority is where money comes from (today; it wasn’t always like that). Thus inflation is distributed in GW2, unlike the real world where inflation benefits the central authority first, then politically favored groups, while the rest of us simply have to pay the higher prices before our own prices rise.
actually power traders counter inflation by siphoning hundreds, thousands of gold a day out of the system via fees.
Inflation is caused by mobs dropping gold. As more and more gold is added to the game, the value of each gold goes down. The only way to stop inflation is to make mobs drop nearly zero money (or at least less money than is being taken out via waypoint fees, repair costs, and TP fees).
The amount of gold that power traders siphon through the TP is negligible compared to the influx of gold required to keep up with prices set and manipulated by them. Which is indirectly a result of their trading behavior. If they didnt set prices so high most players wouldn’t have to farm content 24/7 to be able to afford the goods thay want like precursors and lodestones or ectos.
Besides I don’t think my suggestion would lead to a decrease in TP transactions. People would still be buying items. Only now at more affordable prices.
/facepalm. economics 101: you cannot sell something for more then its market price. “but x is to expensive for me!” I didn’t say your price, I’m talking about the market price. if something goes above market price, people will just not buy it, and farm/grind for it instead.
also, have you thought about the problems it would create? for example, I could no longer be able to give a friend anything I buy off the trading post. or what if I overbuy (either from a typo or overestimating costs) am I just stuck with the excess? they would also have to duple the amount of storage space so you have one slot for account-bound stuff and one for the non-account-bound stuff? and what about the stuff already in the power traders inventory? is it retro-active? if not expect a huge surge in price for stuff as they would buy up inventory in expectation of the change. or do they just not announce it and screw over the people who are just “day trading”?
this suggestion pops up every now and again. it’s not worth the hassle to implement.
Market price is determined by the amount of money available in circulation not only by supply. Precursors where selling for 10-40 gold when the game came out because there was less money circulating. I’m not against making money. I’m saying make money by playing the game and not by breaking the economy. The way things are we are caught in a never ending spiral that only benefits the wealthiest. For all I care they should stealth introduce this fix. Let the hoarders sit with their stash. Sell it at competitive prices, merch the items or create 10 Legendarys and give them to your alts for all I care. But don’t expect to just build up wealth over the backs of honest players that play the game as it was meant to be played. At least my suggestion generates better wealth distribution. The skillfull players benefit. Not the exploiters. Storage space is not an issue. People won’t be buying 10 stacks of anything unless they intend to use them in which case they would need the storage space anyway.
(edited by OmniPotentes.4817)
you don’t seem to understand inflation.
Things going up by price manipulation != inflation
inflation is caused by the constant gold entering the game and also the higher concentration of gold per person playing. This usually can be seen in items like ectos which are pretty much standard and the price haven’t changed extremely since launch and have been going up ever slightly.
Power traders help drive the tp and siphons up money from people with money and the tax in the TP actually takes out large amount of money from the game. They do not effect inflation.
People who buy and hoard rare items do so are something on its own and will happen with or without inflation. What you propose will fix this but would also make the TP useless for people.
With that change people will be much more cautious to buy anything. Volume in the TP would drop significantly. prices for all items would largely fluctuate due to the removal of the buffer of buying then selling. Less money would leave the game. More items would be inflated, not the same items as before.
This change would also largely defeat the purpose of a TP. People’s wealth would be so contained that there would be no point in selling to other players to gain more wealth. Anet might as well just make the TP a npc who sells and buys all items at a fixed price.
sllaw eht no nettirw gnihtemos saw ecno ereht
Please discuss; but keep it civil.
That’s irony considering your post directly insults part of the player base…
Let us buy vendor mats (eg spools of thread) in 250 stacks, end the excessive clicking.
actually power traders counter inflation by siphoning hundreds, thousands of gold a day out of the system via fees.
Inflation is caused by mobs dropping gold. As more and more gold is added to the game, the value of each gold goes down. The only way to stop inflation is to make mobs drop nearly zero money (or at least less money than is being taken out via waypoint fees, repair costs, and TP fees).
The amount of gold that power traders siphon through the TP is negligible compared to the influx of gold required to keep up with prices set and manipulated by them. Which is indirectly a result of their trading behavior. If they didnt set prices so high most players wouldn’t have to farm content 24/7 to be able to afford the goods thay want like precursors and lodestones or ectos.
Besides I don’t think my suggestion would lead to a decrease in TP transactions. People would still be buying items. Only now at more affordable prices.
/facepalm. economics 101: you cannot sell something for more then its market price. “but x is to expensive for me!” I didn’t say your price, I’m talking about the market price. if something goes above market price, people will just not buy it, and farm/grind for it instead.
also, have you thought about the problems it would create? for example, I could no longer be able to give a friend anything I buy off the trading post. or what if I overbuy (either from a typo or overestimating costs) am I just stuck with the excess? they would also have to duple the amount of storage space so you have one slot for account-bound stuff and one for the non-account-bound stuff? and what about the stuff already in the power traders inventory? is it retro-active? if not expect a huge surge in price for stuff as they would buy up inventory in expectation of the change. or do they just not announce it and screw over the people who are just “day trading”?
this suggestion pops up every now and again. it’s not worth the hassle to implement.
Market price is determined by the amount of money available in circulation not only by supply. Precursors where selling for 10-40 gold when the game came out because there was less money circulating. I’m not against making money. I’m saying make money by playing the game and not by breaking the economy. The way things are we are caught in a never ending spiral that only benefits the wealthiest. For all I care they should stealth introduce this fix. Let the hoarders sit with their stash. Sell it at competitive prices or create 10 Legendarys and give them to your alts for all I care. But don’t expect to just build up wealth over the backs of honest players that play the game as it was meant to be played. At least my suggestion generates better wealth distribution. The skillfull players benefit. Not the exploiters. Storage space is not an issue. People won’t be buying 10 stacks of anything unless they intend to use them in which case they would need the storage space anyway.
How are they benefiting off the back of “honest players”? They sit there with their hoarded items. They are losing money doing so. They are also very much putting risk in themselves because anet could at any time do a karka event again.
sllaw eht no nettirw gnihtemos saw ecno ereht
actually power traders counter inflation by siphoning hundreds, thousands of gold a day out of the system via fees.
Inflation is caused by mobs dropping gold. As more and more gold is added to the game, the value of each gold goes down. The only way to stop inflation is to make mobs drop nearly zero money (or at least less money than is being taken out via waypoint fees, repair costs, and TP fees).
The amount of gold that power traders siphon through the TP is negligible compared to the influx of gold required to keep up with prices set and manipulated by them. Which is indirectly a result of their trading behavior. If they didnt set prices so high most players wouldn’t have to farm content 24/7 to be able to afford the goods thay want like precursors and lodestones or ectos.
Besides I don’t think my suggestion would lead to a decrease in TP transactions. People would still be buying items. Only now at more affordable prices.
/facepalm. economics 101: you cannot sell something for more then its market price. “but x is to expensive for me!” I didn’t say your price, I’m talking about the market price. if something goes above market price, people will just not buy it, and farm/grind for it instead.
also, have you thought about the problems it would create? for example, I could no longer be able to give a friend anything I buy off the trading post. or what if I overbuy (either from a typo or overestimating costs) am I just stuck with the excess? they would also have to duple the amount of storage space so you have one slot for account-bound stuff and one for the non-account-bound stuff? and what about the stuff already in the power traders inventory? is it retro-active? if not expect a huge surge in price for stuff as they would buy up inventory in expectation of the change. or do they just not announce it and screw over the people who are just “day trading”?
this suggestion pops up every now and again. it’s not worth the hassle to implement.
Market price is determined by the amount of money available in circulation not only by supply. Precursors where selling for 10-40 gold when the game came out because there was less money circulating. I’m not against making money. I’m saying make money by playing the game and not by breaking the economy. The way things are we are caught in a never ending spiral that only benefits the wealthiest. For all I care they should stealth introduce this fix. Let the hoarders sit with their stash. Sell it at competitive prices or create 10 Legendarys and give them to your alts for all I care. But don’t expect to just build up wealth over the backs of honest players that play the game as it was meant to be played. At least my suggestion generates better wealth distribution. The skillfull players benefit. Not the exploiters. Storage space is not an issue. People won’t be buying 10 stacks of anything unless they intend to use them in which case they would need the storage space anyway.
How are they benefiting off the back of “honest players”? They sit there with their hoarded items. They are losing money doing so. They are also very much putting risk in themselves because anet could at any time do a karka event again.
Players that have 10 precursors or stacks of lodestones are not loosing money. They are setting prices and manipulating the economy by determining the amount of supply that hits the market. Implementing my suggestion won’t change demand. People will still need items to create Legendarys. But at least players can invest in leveling alts and enjoy playing the game instead of having to run CoF 50 times per day in an attempt to keep up with market manipulation prices. Guild Wars 2 is a game. It’s not an economics simulator.
(edited by OmniPotentes.4817)
Ermm, the prices are that high because the demand is that high and people are PAYING that. With how rare the precursors are they’d be sitting up at that price naturally just because people are willing to pay that and there’s currently not nearly enough precursors around for every 1% of people that want them…
Let us buy vendor mats (eg spools of thread) in 250 stacks, end the excessive clicking.
Ermm, the prices are that high because the demand is that high and people are PAYING that. With how rare the precursors are they’d be sitting up at that price naturally just because people are willing to pay that and there’s currently not nearly enough precursors around for every 1% of people that want them…
Inflation is a natural process. However i’m suggesting curbing the rate in which it happens. If flipping and manipulation had been tempered from the start prices would never have been what they are now. There would have been no need for DR which is a huge factor in the supply issue we have nowadays.
The main problem with the economy is inflation which is caused by power traders that speculate and try to manipulate the market by buying stockpiles of whatever they think they can make money off. These people dont contribute one iota to the gaming community.
Your underlying premise is incorrect. Although inflation may be a problem with the economy (and I’m not convinced that it is), it is not the result of the actions of power traders.
Where is price inflation happening? From what I can see, it is with Precursors and other materials required for crafting a Legendary. It doesn’t appear to be happening across the whole economy. As someone who buys materials on the TP and sells items crafted using these materials, I’ve noticed that prices on the materials I buy is relatively stable (they fluctuate up and down of course, but usually within a certain range).
The items you see price inflation occuring tend to be those with limited supply relative to demand, and it is perfectly normal for prices to rise in those circumstances. The higher prices will encourage producers to supply more of the affected items to the market (if possible) and encourage consumers to look at possible substitutions for the original item.
What you are proposing will actually limit the high volume trading activity that helps stabilise the prices of the most commonly bought items such as basic crafting materials and will not change the underlying reasons behind price inflation on the items with low supply relative to demand.
DR is about reducing supply produced from bots (ie check out gw2spidy and t5 mats like smooth scales for when bots have been around, the supply increases a ridiculous amount and their value becomes nothing) which clearly isn’t something that increases value…
Let us buy vendor mats (eg spools of thread) in 250 stacks, end the excessive clicking.
Ermm, the prices are that high because the demand is that high and people are PAYING that. With how rare the precursors are they’d be sitting up at that price naturally just because people are willing to pay that and there’s currently not nearly enough precursors around for every 1% of people that want them…
Inflation is a natural process. However i’m suggesting curbing the rate in which it happens. If flipping and manipulation had been tempered from the start prices would never have been what they are now. There would have been no need for DR which is a huge factor in the supply issue we have nowadays.
Flipping does not cause inflation and manipulation can only affect the price of items in the short term.
actually power traders counter inflation by siphoning hundreds, thousands of gold a day out of the system via fees.
Inflation is caused by mobs dropping gold. As more and more gold is added to the game, the value of each gold goes down. The only way to stop inflation is to make mobs drop nearly zero money (or at least less money than is being taken out via waypoint fees, repair costs, and TP fees).
The amount of gold that power traders siphon through the TP is negligible compared to the influx of gold required to keep up with prices set and manipulated by them. Which is indirectly a result of their trading behavior. If they didnt set prices so high most players wouldn’t have to farm content 24/7 to be able to afford the goods thay want like precursors and lodestones or ectos.
Besides I don’t think my suggestion would lead to a decrease in TP transactions. People would still be buying items. Only now at more affordable prices.
/facepalm. economics 101: you cannot sell something for more then its market price. “but x is to expensive for me!” I didn’t say your price, I’m talking about the market price. if something goes above market price, people will just not buy it, and farm/grind for it instead.
also, have you thought about the problems it would create? for example, I could no longer be able to give a friend anything I buy off the trading post. or what if I overbuy (either from a typo or overestimating costs) am I just stuck with the excess? they would also have to duple the amount of storage space so you have one slot for account-bound stuff and one for the non-account-bound stuff? and what about the stuff already in the power traders inventory? is it retro-active? if not expect a huge surge in price for stuff as they would buy up inventory in expectation of the change. or do they just not announce it and screw over the people who are just “day trading”?
this suggestion pops up every now and again. it’s not worth the hassle to implement.
Market price is determined by the amount of money available in circulation not only by supply. Precursors where selling for 10-40 gold when the game came out because there was less money circulating. I’m not against making money. I’m saying make money by playing the game and not by breaking the economy. The way things are we are caught in a never ending spiral that only benefits the wealthiest. For all I care they should stealth introduce this fix. Let the hoarders sit with their stash. Sell it at competitive prices, merch the items or create 10 Legendarys and give them to your alts for all I care. But don’t expect to just build up wealth over the backs of honest players that play the game as it was meant to be played. At least my suggestion generates better wealth distribution. The skillfull players benefit. Not the exploiters. Storage space is not an issue. People won’t be buying 10 stacks of anything unless they intend to use them in which case they would need the storage space anyway.
you seem to be under the assumption that the TP is not part of the game. why is it not while crafting, for example, is?
and what makes you think that simply making purchases from the auction house account bound will stop people from making money off it? for example, I could see people buying up precursors to make into legionaries to sell for profit, for example.
God poor people complaining even in game Dainel tosh was right sigh why you waste your time making post like this. You could be making money
actually power traders counter inflation by siphoning hundreds, thousands of gold a day out of the system via fees.
Inflation is caused by mobs dropping gold. As more and more gold is added to the game, the value of each gold goes down. The only way to stop inflation is to make mobs drop nearly zero money (or at least less money than is being taken out via waypoint fees, repair costs, and TP fees).
The amount of gold that power traders siphon through the TP is negligible compared to the influx of gold required to keep up with prices set and manipulated by them. Which is indirectly a result of their trading behavior. If they didnt set prices so high most players wouldn’t have to farm content 24/7 to be able to afford the goods thay want like precursors and lodestones or ectos.
Besides I don’t think my suggestion would lead to a decrease in TP transactions. People would still be buying items. Only now at more affordable prices.
/facepalm. economics 101: you cannot sell something for more then its market price. “but x is to expensive for me!” I didn’t say your price, I’m talking about the market price. if something goes above market price, people will just not buy it, and farm/grind for it instead.
also, have you thought about the problems it would create? for example, I could no longer be able to give a friend anything I buy off the trading post. or what if I overbuy (either from a typo or overestimating costs) am I just stuck with the excess? they would also have to duple the amount of storage space so you have one slot for account-bound stuff and one for the non-account-bound stuff? and what about the stuff already in the power traders inventory? is it retro-active? if not expect a huge surge in price for stuff as they would buy up inventory in expectation of the change. or do they just not announce it and screw over the people who are just “day trading”?
this suggestion pops up every now and again. it’s not worth the hassle to implement.
Market price is determined by the amount of money available in circulation not only by supply. Precursors where selling for 10-40 gold when the game came out because there was less money circulating. I’m not against making money. I’m saying make money by playing the game and not by breaking the economy. The way things are we are caught in a never ending spiral that only benefits the wealthiest. For all I care they should stealth introduce this fix. Let the hoarders sit with their stash. Sell it at competitive prices, merch the items or create 10 Legendarys and give them to your alts for all I care. But don’t expect to just build up wealth over the backs of honest players that play the game as it was meant to be played. At least my suggestion generates better wealth distribution. The skillfull players benefit. Not the exploiters. Storage space is not an issue. People won’t be buying 10 stacks of anything unless they intend to use them in which case they would need the storage space anyway.
you seem to be under the assumption that the TP is not part of the game. why is it not while crafting, for example, is?
and what makes you think that simply making purchases from the auction house account bound will stop people from making money off it? for example, I could see people buying up precursors to make into legionaries to sell for profit, for example.
Pretty much, even now approx 80% of the several hundred gold I have has been produced by buying mats > craft > selling for around 20% – 50% profit on what I paid for the mats.
Let us buy vendor mats (eg spools of thread) in 250 stacks, end the excessive clicking.
The effect of adopting the OP’s suggestion would be to raise the price of everything.
First off, as previously mentioned, transaction fees are a considerable gold sink. The effect of having each item pass through the TP once and no more would be to create a higher currency supply than before; that is, it would cause inflation, which would cause prices to rise as gold entered the economy but failed to exit.
Secondly, having every purchase be an act of “consumption” would result in a lower supply of items people want on the TP. Lower supply = higher prices. This is why craftables are bind on equip; if they weren’t, craftable items would have an even lower value than they already do.
tl;dr: The OP’s idea would have precisely the opposite of its intended effect.
The main problem with the economy is inflation which is caused by power traders that speculate and try to manipulate the market by buying stockpiles of whatever they think they can make money off. These people dont contribute one iota to the gaming community.
Your underlying premise is incorrect. Although inflation may be a problem with the economy (and I’m not convinced that it is), it is not the result of the actions of power traders.
Where is price inflation happening? From what I can see, it is with Precursors and other materials required for crafting a Legendary. It doesn’t appear to be happening across the whole economy. As someone who buys materials on the TP and sells items crafted using these materials, I’ve noticed that prices on the materials I buy is relatively stable (they fluctuate up and down of course, but usually within a certain range).
The items you see price inflation occuring tend to be those with limited supply relative to demand, and it is perfectly normal for prices to rise in those circumstances. The higher prices will encourage producers to supply more of the affected items to the market (if possible) and encourage consumers to look at possible substitutions for the original item.
What you are proposing will actually limit the high volume trading activity that helps stabilise the prices of the most commonly bought items such as basic crafting materials and will not change the underlying reasons behind price inflation on the items with low supply relative to demand.
Another variable is the gold dumped on the market from gold/gem conversions and probably to a lesser extent gold sellers. This gold absolutely does cause inflation of prices.
Legendaries only appeared on the Trading Post last month. I’m wondering if gold sellers are cashing out before going on to another game?
Since my last post got deleted, let me reprashe my self.
You, sir, have no idea what inflation is. This comes across in several posts you have made, and to implent a system that more or less makes the whole point of a TP nonexistant would probably kill all trade what so ever.
Another variable is the gold dumped on the market from gold/gem conversions and probably to a lesser extent gold sellers. This gold absolutely does cause inflation of prices.
Legendaries only appeared on the Trading Post last month. I’m wondering if gold sellers are cashing out before going on to another game?
That can only have an inflationary effect if you assume the gem → gold exchange process creates gold out of thin air and the volume of gem → gold is at least 30% larger than than the volume of gold → gem exchanges, otherwise the exchange should in fact be removing gold supply from the economy.
Gold sellers aren’t creating gold out of thin air, but could be increasing the supply of gold by the sheer amount of bot farming behind their operations. I’m not willing to hazard a guess as to how significant this increase is in comparison to the normal amount of gold the entire playing population is generating by playing the game.
In either case, my point is that this reported inflation is not being seen across the whole range of items in the TP, but rather in specific sectors where there is low supply relative to demand. While an increased supply of gold in the economy can help provide fuel for these price rises, the underlying cause is due to supply factors in the items themselves and how players value their time.
For example, charged lodestones have been selling for around 4 gold on average over the past week (http://www.gw2spidy.com/item/24305). I’m not sure how long it take a player to farm a charged lodestone, but for the sake of argument, assume that a player farming them can obtain 1 per hour. This would mean that I can either spend an hour farming for a lodestone, or spend 4 gold on buying one. If I can earn 2g per hour of (non-farming) play, then I will be more likely to spend the time farming for the lodestones I require. If I can earn 5g per hour of play, then I’m more likely to be willing to spend money on the TP to buy the lodestones I require.
While there are a number of other variables in play, it seems to me that the current price of lodestones is roughly in line with what you’d expect to see given the effort farming them requires vs. the rewards players can gain from doing other activities instead. No one can monopolize the supply of Lodestones, as people can always farm for them. If the price is pushed too high by market traders (as the OP contends), then people gravitate towards farming for them (which will also increase the supply available on the TP).
Rising prices on the trading post leads directly to more money being sank from the trading post in the 15% transaction fee. All else being equal, prices will rise until the amount being sank from that 15% fee exactly matches the rate at which gold is generated by the game through drops, minus gold sank by other means.
High volume and frequency trading by power traders increases the rate at which gold is sunk, which correspondingly works to hold prices down.
This is, like, the first week of macro 1 with a pencil and a napkin.
The solution to the problem is to apply a DR on TP earnings.
Pretty much everything in the game has a DR except trading.
Wanna play fair? That’s my fair
Commander Athrael ThunderBorn
GM of Crew of Misfits (CoM)
Piken Square, EU
GM of Crew of Misfits (CoM)
Piken Square, EU
@OmniPotentes.4817
If this was put in I would be made obscenely rich. So thank you for giving me a chill.
But from a practical standpoint, less supply means higher prices, and binding goods on pickup from the TP would certainly lead to less supply.
While there are traders who makes money from rising prices, there are just as many who make their money from falling prices. Killing one of these kinds of traders will lead to the others running rampant.
A few other quick points here.
Omni, I hate to also be the messenger on this, but all MMORPG’s that have some form of AH system are economic simulators. In fact, these systems are the most real world simulators, because just as a real economy is based on thousands of unique humans with personal “greed” so are these AH systems, which differs from the computer simulators where the individual desires are removed. (For more details on why this is important, I would point you to FA Hayek’s book “Road to Serfdom”, as there is no way I could do his work justice here).
We should also define what price means: it is an indicator of the scarcity of resources for the market to allocate time and energy into bringing goods to market.
As far as the example is concerned, you are forgetting a major point, the demand for these items has been increasing as the money supply has been increasing (as more people are reaching level caps and starting to look into crafting these items, just as more mobs have been killed and events completed) – so we would expect to see a linear increase from that alone.
However, you are forgetting (like many who use the 2%/98% argument) that risk is involved in doing that “day trading”. Mats might not sell at a rate that makes the initial investment profitable (because people do have to buy the items posted for the posted price) compared to some other venture or purchase. Ultimately a free market approach works best for everyone once you think beyond stage 1 thinking (aka what the masses think and want right now).
As others have also mentioned on here, if there was no “middle man”/“day trader” the farmers would have little to no competition so then could charge whatever price they wish for the mats that they collected.
Also, the “wealth distribution” argument is way over played and over used. Players who “horde” their money do so at a loss (remember that the money supply is constantly growing so inflation is going to be active regardless). Those that have developed ways of collecting gold will do regardless of most any system that could be put into place. This is sadly the natural order of things, hence the “Year of Jubilee” (every 49/50 years slave owning families would release their slaves and forgive debts to families only to have to repeat this same forgiveness to the same families in another 49/50 years).
Won’t fix anything, what we need are better drops, so I can get everything I need by playing and forget about the trading post.
Elonian elite specialization ideas: El: Dervish
M: Bladedancer – N: Scourge – En: Occultist – Ra: Swampstalker
T: Sharpshooter – G: Sunspear – Re: Hierophant – W: Corsair
M: Bladedancer – N: Scourge – En: Occultist – Ra: Swampstalker
T: Sharpshooter – G: Sunspear – Re: Hierophant – W: Corsair
Without power traders the price of crafting mats would increase. Who do you thing supply the market with 10,000’s of crafting mats of day? The price of precursors is so high because of the high demand and low supply of them. The good looking legendaries precursor have the lowest supply, example the dusk has 3-5 on TP with ~5000 demand. The most dusk that were ever on TP was ~21 after the lost shore event http://www.gw2spidy.com/item/29185. The reason why the dusk is so expensive is because it creates one of the best looking legendary’s and you have the same chance of get the dawn from mystic forge as you do the dusk. The venom it the lowest costing precursor http://www.gw2spidy.com/item/29183. The supply of it keeps increasing since few want that as their first legendary and players are rarely underwater to use it.
Ele – Tarnished Coast
“Quoth the raven nevermore”
Platinum Scout: 300% MF
“Quoth the raven nevermore”
Platinum Scout: 300% MF
Without power traders the price of crafting mats would increase. Who do you thing supply the market with 10,000’s of crafting mats of day?
Right conclusion, wrong premise.
The traders don’t bring in materials. In fact, they bring in less than they would by playing the game normally. What they do is they shift them around, usually causing temporary spikes in the pices.
However, since traders are constantly buying and selling in massive quantity, they are taking out a ton of gold from circulation with the TP fees.
Without power traders the price of crafting mats would increase. Who do you thing supply the market with 10,000’s of crafting mats of day?
Right conclusion, wrong premise.
The traders don’t bring in materials. In fact, they bring in less than they would by playing the game normally. What they do is they shift them around, usually causing temporary spikes in the pices.
However, since traders are constantly buying and selling in massive quantity, they are taking out a ton of gold from circulation with the TP fees.
No they do. Salvaging less valued items to get the higher valued crafting mats or mystic forging items to create the rarer items is what power traders tend to do. How does increasing the supplies of rare items and crafting mats increases prices? It does not, increase supply means lower prices. Power trade find the items player think are worthless and make them more valuable to make a profit.
Spike in prices are caused by low supply. Like when A-net messes around with the drop rate of items (increasing the price off most cooking mats) or that mass bot ban (increasing the price of all mats). Look at the precursors after lost shore becaused of the spike in supply the cost of precursors drop. Yet, the drop rate of precursors did not change much and the market value of them increased back up to the pre-lost shore value in a few weeks.
Ele – Tarnished Coast
“Quoth the raven nevermore”
Platinum Scout: 300% MF
“Quoth the raven nevermore”
Platinum Scout: 300% MF
(edited by Ulion.5476)