Inf Supply: Idle Speculation


Another_Fan

 

Posted

Quote:
Originally Posted by Another_Fan View Post
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You make the assumption that there is a continuous stream of items listed just above the flipper's purchase price. This is FALSE.

Its pretty easy to see why, if there is a continuous input of items into the market at just above the flippers buy price they will never sell their item.
Eh? When I see a price range on a drop I'm selling that looks like flippers at work, say

3M
9.5M
10M
3M
10M

I'll always list well above what the flipper is purchasing at, say 8M or 9M, and always sell it (unless the price happens to be crashing right around then, and when I come back its trending 1M-3M or something). I'm not competing with his purchase price, I'm competing with his sales price.

And if I'm doing the flipping, I'll always see some sales I didn't make, so someone is working in between my range. Meaning there is a continuous supply of items above my purchase price. If it gets *too* continuous, I move on.


 

Posted

Quote:
Originally Posted by UberGuy View Post
GameMaster, a poster who had very little presence on this subforum but who was pretty well-known among broader forum regulars are the time as a rather intelligent person came here and pretty much posted a step-by-step breakdown of his experience manipulating prices. He sucked up supply, drove up the price, watched the market react, and sold his hoovered up supply. He discussed how profit-per-item changed through the course of the run, prior failed attempts, and how many times he failed before succeeding. He drew broad conclusions about conditions he reckoned most strongly affected likelihood of success in his approach.

This was something like 6-12 months after the market appeared in the game.

Most people posting in this thread spoke up in that thread, and none should therefore be claiming that manipulation doesn't happen or can't produce a profit. I have referred to that thread by GM in past discussions about this topic. All the argument appears, in fact, to be about how pervasive this activity is in practice, which spans some combination of how many items are being affected simultaneously, how often any items are affected, and for how long when they are affected.
There's a certain irony here, in that this is exactly the sort of thread he would have avoided like the plague. Back then, part of the problem was just discussing market activity like flipping academically, rather than outside the charged atmosphere of whether using the markets for any purpose other than to buy items for crafting was socially acceptable.

You may recall market manipulation was actually being called "griefing" by some on the forums, and I and a few other players actually got word of god replies from the devs that the markets were explicitly intended to be, at least in part, a PvP metagame (to the extent that markets generally are) and that as a result no market activity could or would be categorized by the devs as actionable griefing.

It was actually that dev statement that caused me to back away from over-analyzing market chicanery. My recollection of that thread is fuzzy, but it was around the same time the markets were released in I9 that The_Gamemaster was at his most empirically analytical. Definitely a poster I miss having around.


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Posted

Quote:
Originally Posted by Arcanaville View Post
You may recall market manipulation was actually being called "griefing" by some on the forums.....
Ah, memories!


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Posted

Ah, thank you. I was sure I was mangling his name somehow, but couldn't find the right variation. The_Gamemaster.


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Posted

Quote:
Originally Posted by Ironblade View Post
Wow, gotta be 10 times by now that you or someone else has made a stupid comment along these lines. Flipping increases the lowest price for an item while simultaneously lowering the highest price; i.e. it narrows the price range.
So far you haven't offered anything to support your statements. All you have done is just repeat that flipping narrows the price range.

Here's a hint. Just because you narrow the price range, doesn't mean you have decreased the price.

Here's another. You don't have to narrow the price range when flipping.


 

Posted

Quote:
Originally Posted by Scientist View Post
Eh? When I see a price range on a drop I'm selling that looks like flippers at work, say

3M
9.5M
10M
3M
10M

I'll always list well above what the flipper is purchasing at, say 8M or 9M, and always sell it (unless the price happens to be crashing right around then, and when I come back its trending 1M-3M or something). I'm not competing with his purchase price, I'm competing with his sales price.

And if I'm doing the flipping, I'll always see some sales I didn't make, so someone is working in between my range. Meaning there is a continuous supply of items above my purchase price. If it gets *too* continuous, I move on.
How would you list if the flipper wasn't there ? In your case the flipper is having a secondary effect shifting where you would list.

It gets even worse when you set aside the very limited definition of flipping and allow for more advanced techniques.


 

Posted

Quote:
Originally Posted by UberGuy View Post

So most of the people who say "flipping doesn't raise the price" are talking about a notion of "the price" that represents an average of the low and high prices over some time window. In that model of the market, the perfect flipper collapses the price to that price and does not change it.
That isn't the perfect flipper. That would be a flipper who acts mechanically even when it is against their own interests


 

Posted

Quote:
Originally Posted by Edana View Post
It was a comment on the futility of your approach rather than the validity of the point.
What is my cause ?

Right now its to laugh. So if you want to use the wall street analogy, it would be like going to see a speaker from Drexel Burnham Lambert give a talk on what a great investment high yield bonds are.

Or to use something more current, Bankers explain that self regulation for the banking industry is the way to go.