Trading System's complexity

Why is era like this? I know truely that the community decides the prices, but how do they plummet like that? For example the "back to school" shop just released a whole bunch of items, when it reaches to the tables, people sold it for 1.2k trochus
now its only 800-900, why and how?? Its just gonna drop to 250 soon so why not drop it early? Im literally am breaking my brain thinking;

oh, 900 tro? thats a cheap price for it
*buys an item*
*later that day*
Selling Magic Pen Melee for 300 tro.
Me: ._.

How am I supposed to know when the prices will drop, why wouldnt they just drop the prices though the community itself knows that the item will drop?

Trading is the only system in iEra that I find most confusing

I know, compared to its comparison between graalats and trochus, that traders exploit the cheap price beyond its currency as graalats,
but is it not irritating to see that you spent shells you worked hard on and comes flashin on your face that you could have bought it 60% cheaper than what you spent on it in the first place

Am I making any sense at all?

I mean dont you feel scammed just thinking about that? what a complete waste of time and effort.

I have not been victimed "yet" but Im completely hesitating to trade items from the recent "back go school" shop, as if the feeling if you should buy it now, or later? because you never know if it shall rise or drop...

Any tips to cure this phobia of mine and answer the complec system of the trade table?

The trade economy is run by 13 year old kids who have no idea how a real economy works, so prices are completely arbitrary most of the time since there is not an official count of how many trochus, stun guns, rage blades, etc. there are active.
The exception is when a super/ultra item is hoarded by one person, prices usually go up because demand is higher than supply.
Don't worry about it too much, just have a rough estimate of your item's price on the market right now, and buy low, sell high. (Ex: Stun being around 2.1k right now, buying it 2k and selling 2.3k would be a good profit margin)
Also yeah, items like stun that have been on sale since before 2012 and are still on sale today should go lower in price, but somehow it's going higher (?) even though there is statistically more supply than demand.

Sorry for being a bit off-topic, but...

Some items' price increase are understandable. We can take the Bee Knife as a example. As the time passes, more people want the item because it's the best mushroom picking knife around, so it's becoming more and more rare and etc... Now Stun Gun doesn't make any sense... It's becoming more common around and some people want 2.5k trochus for it... I remember that not long ago the price range didn't pass the mark of 1.9k trochus... It's basically what Gabipants said. It is run by people who doesn't understand economies and the items are randomly getting prices higher. *sorry for my english*

And that's why we don't let 12 year old kids run the stock market in real life! :D

Quote:

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Originally Posted by Shiver.

Why is era like this? I know truely that the community decides the prices, but how do they plummet like that? For example the "back to school" shop just released a whole bunch of items, when it reaches to the tables, people sold it for 1.2k trochus
now its only 800-900, why and how?? Its just gonna drop to 250 soon so why not drop it early? Im literally am breaking my brain thinking;

oh, 900 tro? thats a cheap price for it
*buys an item*
*later that day*
Selling Magic Pen Melee for 300 tro.
Me: ._.

How am I supposed to know when the prices will drop, why wouldnt they just drop the prices though the community itself knows that the item will drop?

Trading is the only system in iEra that I find most confusing

I know, compared to its comparison between graalats and trochus, that traders exploit the cheap price beyond its currency as graalats,
but is it not irritating to see that you spent shells you worked hard on and comes flashin on your face that you could have bought it 60% cheaper than what you spent on it in the first place

Am I making any sense at all?

I mean dont you feel scammed just thinking about that? what a complete waste of time and effort.

I have not been victimed "yet" but Im completely hesitating to trade items from the recent "back go school" shop, as if the feeling if you should buy it now, or later? because you never know if it shall rise or drop...

Any tips to cure this phobia of mine and answer the complec system of the trade table?

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alright as a baseconomic theorist, let me enlighten you.

In the trade system, whenever players put items up for sale at a certain price, 3 scenarios could happen.

1. the price that they are charging is considered lower than what most would charge. The transaction goes through, and there is devaluation in the real price of the item since it is charged lower than it should be. Players who resell the item will sell at a seemingly lower price as this will get others to buy, but they will earn a small profit because they bought it at a much lower price. As the cycle goes on, the prices will slowly increase up to a point where it is above the market value, then scenario 2 occurs.

2. The price they are charging is too high. This case, no one would purchase the item so the seller will usually lower the price until someone takes the offer. This usually results in either the first scenario, or that the price charged is considered the market value. If everyone charges at this price, it becomes the popular market value (PMV).

3. The price that they charge is too high but the buyer is ignorant enough to buy it. If the person sells the item to another person after buying it, he will charge a high price to gain a profit, resulting in scenario 2. If someone else takes the high price, then scenario 3 repeats itself. Consecutive repetition of this results in inflated prices.

Realise that either way the prices will find its way into the popular market value. It is not that players do not want to sell at 300 trochus when they bought the item at 900 bucks, it is because no one wants it, which is why we see devaluation.

Quote:

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Originally Posted by LYK08

alright as a baseconomic theorist, let me enlighten you.

In the trade system, whenever players put items up for sale at a certain price, 3 scenarios could happen.

1. the price that they are charging is considered lower than what most would charge. The transaction goes through, and there is devaluation in the real price of the item since it is charged lower than it should be. Players who resell the item will sell at a seemingly lower price as this will get others to buy, but they will earn a small profit because they bought it at a much lower price. As the cycle goes on, the prices will slowly increase up to a point where it is above the market value, then scenario 2 occurs.

2. The price they are charging is too high. This case, no one would purchase the item so the seller will usually lower the price until someone takes the offer. This usually results in either the first scenario, or that the price charged is considered the market value. If everyone charges at this price, it becomes the popular market value (PMV).

3. The price that they charge is too high but the buyer is ignorant enough to buy it. If the person sells the item to another person after buying it, he will charge a high price to gain a profit, resulting in scenario 2. If someone else takes the high price, then scenario 3 repeats itself. Consecutive repetition of this results in inflated prices.

Realise that either way the prices will find its way into the popular market value. It is not that players do not want to sell at 300 trochus when they bought the item at 900 bucks, it is because no one wants it, which is why we see devaluation.

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This makes alot of sense, thank you for that.
Thats the problem though.

An infinite chain of different prices, drop or rise anonymously just by an action a buyer does.
If the buyer changes the price, the anonymous price change will break, and form another chain of which has the item floating in an ocean of plummeting prices.

Leaving the current buyer heartbroken if hes a seller who either sold the exact same item with a higher price

(Thinking that he couldve sold it on a higher currency to get 2 or more times the price he sold it)

or a lower price

(If the seller is still currently selling the item, that he got from another person at a higher price, and notices that nobodys buying the expensive item cuz it dropped, almost everyone sells it at a lower price, forcing the seller to also drop his price and left with no earned trochus.)

Quote:

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Originally Posted by Shiver.

This makes alot of sense, thank you for that.
Thats the problem though.

An infinite chain of different prices, drop or rise anonymously just by an action a buyer does.
If the buyer changes the price, the anonymous price change will break, and form another chain of which has the item floating in an ocean of plummeting prices.

Leaving the current buyer heartbroken if hes a seller who either sold the exact same item with a higher price

(Thinking that he couldve sold it on a higher currency to get 2 or more times the price he sold it)

or a lower price

(If the seller is still currently selling the item, that he got from another person at a higher price, and notices that nobodys buying the expensive item cuz it dropped, almost everyone sells it at a lower price, forcing the seller to also drop his price and left with no earned trochus.)

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popular market value changes with time so, a buyer should not feel sad that his item is worth more than what he sold some time ago. This is because the value of the item may appreciate with an increase in demand.

There's also the case when the item depreciates in demand and so does its price. In that case previous sellers would be happy that they earned some profit when they sold it at a higher price in the past.

It is a give and take situation. If players want to reduce disappointment, they will have to forecast the ideal time to sell their items - that is, when the demand is the highest. The thing is that there are no indicators in the trade economy for players to base their predictions on.

I am introducing baseconomics, which is about basing and it will be used for forecasting purposes in the basing ssector.