Lord Fitz
Project Amargosa
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Posted - 2009.09.28 12:02:00 -
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 Originally by: Aylara
Edited by: Aylara on 27/09/2009 11:43:14
Originally by: Brock Dillinger
Originally by: Nika Dekaia
... people set the prices lower than they should, at times even make a loss without knowing it
"Than they should"? So, is your problem with aggressive competition, or the fact that people aren't playing the game the way YOU think they should? If people choose to sell under market value, irrespective of their ACTUAL COSTS, that's their business. Some of you guys need to get over it.
Selling under production cost is considered "unfair competition" and it is a criminal offence in ALL the market economies around the world. The problem with the capitalism today is that everyone wants to have monopoly.
Wikipedia article on Unfair Competition.
Because, according to that article it's only in the European Union, that must equal 'ALL' the market economies around the world. In the real world where people are paid real money to attempt to enforce this, enforcement is rare.
The reality is that the law exists because the market in Eve is far more efficient than those in real economies you don't need such laws. There are markets in the real world that have just two or three sources of a particular type of product, and one may have a clear advantage over the other two. In Eve, products produced by any method can be identical, and the barrier to entry minimal, there are tens of thousands of potential suppliers of any 'product'.
What's more the supply from BPOs is hard capped, they can not possibly gain market share by predatory pricing. Thus all T2 items will be priced above invention cost unless there is oversupply (more than 100%) through BPOs alone, in which case the prices will be only barely above the BPO build cost.
Keep in mind when calculating invention profit, decryptors can make a difference, also prices do fluctuate, and spiking material prices make make something appear unprofitable that when all the build jobs went on was quite profitable.
Also remember that tiny margins are all that are needed to maintain an account using GTCs, and make a good profit. People don't look at the 500k they make building one item, they look at the 400 million isk they make by selling 800 of the items.
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