The 0.01 punks are not only in a cartel. They are leaving serious money on the table, despite they do what they do with the exact purpose to leave none. Their logic is simple: I want to sell for the highest available price. I can't sell higher than the other guy (because then he sells), so I sell for 0.01 lower. Logical, right?
Only for someone with the economy knowledge of a Guristas NPC. The 0.01 punks assume that sells and buys happens anyway, just the price changes. They completely ignore price elasticity.
Most items in MMOs are very price-flexible. After all everything in a video game is luxury product as playing video games is a luxury. You can't force players to accept your price, just like you can't force people to accept high refreshment prices. If Coca and Pepsi would go cartel and sell a liter of cola for $100, people would simply drink water. Also, they can't be forced to accept low buy prices: they simply stop farming it. While in real life, working has overhead and momentum (can't turn a bakery into a steel mill overnight), in MMOs an NPC grinder can change to mission running in a second. Also, he can just choose to not grind anything. Not like he'll be evicted from his station or his character starve to death.
0.01-ing is so prevalent among economically uneducated population that simple sellers and buyers (people who farmed the item for sale or buy for consumption) consider it the normal pricing. Of course they are defeated by professional (or botter) AH-campers, so they sell/buy nothing. They give up and sell to a buy order or buy from a sell order, just as the AH-camper bunch wanted. This means that they control the prices and they try to keep the buy and sell orders as far from each other as possible.
Since the buy orders are low, the farmers (who are more flexible than consumers) react by farming something else. This decreases the amount of items resulting an overdemand from consumers. They buy out the sell orders, so the next 0.01 guy can make his sell much higher, followed by the others. Since the difference between buy and sell orders grown, more and more 0.01 punks come to trade the item. If you see 20 buy orders for 50M and 30 for 150M, you see the result of this behavior. These wonderful creatures in their quest to leave no money on the table left almost all of it there. There are only a few items circulating and dozens of punks are undercutting each other, camping the AH for those 1-2 sells/day. Farmers find the item crap (due to low buy price) and buyers go cry on the forums for the developer to stop the campers.
Here I come with red underwear outside of my pants and big S on my chest with two vertical lines placed on it. Instead of placing the 21st buy order at 50000000.26 ISK, I place mine at 60M. The crowd follows. A day later I refresh to 70M. They probably curse me for ruining it for all of them. Next day: 80M. And something weird happens: the buy orders start to fill up. The farmers find 80M worthy of selling. Of course for 150M there are barely any buyers so all 0.01 guys start to accumulate items. After a few days they no longer place buy orders as they already have a dozen of the damn thing and still sold none. Then finally I get my first item which I should relist for 149999999.56 according to them. Instead I start with 140M. Then 130 and so on until I sell. The lower the prices are, the more buyers come.
At the end of the intervention I buy for 90M and sell for 110M clear from interference from the 0.01 guys. After all, who wants to camp the AH for 20M profit? Mining Veldspar pays better.
The funny thing is that I don't have any superpowers to break down the "evil capitalism". Anyone could break it. The farmer guy could list his wares at 100M instead of 149999999.85. He just don't, as he don't want to leave money on the table. The buyer guy could break it by setting a buy order at 100. But he won't as he either don't want to leave money on the table and go for 50000000.56 or buys from a sell order. Finally other businessmen could break it but they don't as they don't want to leave money on the table.
EVE is old enough and with buy orders well-designed enough to have an efficient economy. It is just too damn littered with morons who can't see further than their nose. But I'm not complaining. If they had brains, I wouldn't make 4 PLEX a day.
Finally, who else could be the moron of the day than the 0.01 punk who spent 40M to buy and sell just to figure out to whom shall he prove his utter idiocy. Thanks Mike for the screenshot:
Of course if someone sends you such moron letters, feel free to send it to me.
Thursday morning report: 85.0B (1.5B spent on main accounts, 1.3 spent on logi, 1.0 on Ragnarok, 0.5 on Rorqual, 0.9 on Nyx, 0.8 on Avatar, 2.6B received as gift).
Only for someone with the economy knowledge of a Guristas NPC. The 0.01 punks assume that sells and buys happens anyway, just the price changes. They completely ignore price elasticity.
Most items in MMOs are very price-flexible. After all everything in a video game is luxury product as playing video games is a luxury. You can't force players to accept your price, just like you can't force people to accept high refreshment prices. If Coca and Pepsi would go cartel and sell a liter of cola for $100, people would simply drink water. Also, they can't be forced to accept low buy prices: they simply stop farming it. While in real life, working has overhead and momentum (can't turn a bakery into a steel mill overnight), in MMOs an NPC grinder can change to mission running in a second. Also, he can just choose to not grind anything. Not like he'll be evicted from his station or his character starve to death.
0.01-ing is so prevalent among economically uneducated population that simple sellers and buyers (people who farmed the item for sale or buy for consumption) consider it the normal pricing. Of course they are defeated by professional (or botter) AH-campers, so they sell/buy nothing. They give up and sell to a buy order or buy from a sell order, just as the AH-camper bunch wanted. This means that they control the prices and they try to keep the buy and sell orders as far from each other as possible.
Since the buy orders are low, the farmers (who are more flexible than consumers) react by farming something else. This decreases the amount of items resulting an overdemand from consumers. They buy out the sell orders, so the next 0.01 guy can make his sell much higher, followed by the others. Since the difference between buy and sell orders grown, more and more 0.01 punks come to trade the item. If you see 20 buy orders for 50M and 30 for 150M, you see the result of this behavior. These wonderful creatures in their quest to leave no money on the table left almost all of it there. There are only a few items circulating and dozens of punks are undercutting each other, camping the AH for those 1-2 sells/day. Farmers find the item crap (due to low buy price) and buyers go cry on the forums for the developer to stop the campers.
Here I come with red underwear outside of my pants and big S on my chest with two vertical lines placed on it. Instead of placing the 21st buy order at 50000000.26 ISK, I place mine at 60M. The crowd follows. A day later I refresh to 70M. They probably curse me for ruining it for all of them. Next day: 80M. And something weird happens: the buy orders start to fill up. The farmers find 80M worthy of selling. Of course for 150M there are barely any buyers so all 0.01 guys start to accumulate items. After a few days they no longer place buy orders as they already have a dozen of the damn thing and still sold none. Then finally I get my first item which I should relist for 149999999.56 according to them. Instead I start with 140M. Then 130 and so on until I sell. The lower the prices are, the more buyers come.
At the end of the intervention I buy for 90M and sell for 110M clear from interference from the 0.01 guys. After all, who wants to camp the AH for 20M profit? Mining Veldspar pays better.
The funny thing is that I don't have any superpowers to break down the "evil capitalism". Anyone could break it. The farmer guy could list his wares at 100M instead of 149999999.85. He just don't, as he don't want to leave money on the table. The buyer guy could break it by setting a buy order at 100. But he won't as he either don't want to leave money on the table and go for 50000000.56 or buys from a sell order. Finally other businessmen could break it but they don't as they don't want to leave money on the table.
EVE is old enough and with buy orders well-designed enough to have an efficient economy. It is just too damn littered with morons who can't see further than their nose. But I'm not complaining. If they had brains, I wouldn't make 4 PLEX a day.
Finally, who else could be the moron of the day than the 0.01 punk who spent 40M to buy and sell just to figure out to whom shall he prove his utter idiocy. Thanks Mike for the screenshot:
Of course if someone sends you such moron letters, feel free to send it to me.
Thursday morning report: 85.0B (1.5B spent on main accounts, 1.3 spent on logi, 1.0 on Ragnarok, 0.5 on Rorqual, 0.9 on Nyx, 0.8 on Avatar, 2.6B received as gift).
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