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Public News Post #11181

supply and demand

Written by: Maklyr Wildfang, Oracle of Demeter
Date: Sunday, June 1st, 2003
Addressed to: Leafwalker, Zekk Danial-Drake


Zekk,

Your shrill calls for the credit market to be scrapped will hopefully go
unheeded. Let me share with you a bit of wisdom: the price of a scarce
good will rise until the demand for it is in equilibrium with its
supply. I therefore find it no surprise that the lowest selling price
for credits is higher now, when there are ~100 credits for sale, than it
was when the credit market was reasonably new, and there were often over
1000 credits for sale.

Further, you don't seem to understand that the average price listed in
CREDITS FOR SALE is essentially a meaningless number. The two numbers
that you need to make any sort of judgement about credit pricing are the
lowest asking price, and the average -purchase- price (i.e. what people
actually paid for the credits) over some period of time. The latter
number is unfortunately unavailable.

Lastly, you seem to be under the impression that you have some right to
buy credits at some arbitrary price in gold, whether that be 2k or 2.5k,
or some other number. This is clearly not the case. The only place you
can have the guarantee of a reasonably fixed price for credits is in the
otherworldly market, where the prices are denominated in 'dollars.' In
open trading, people will charge what the market will bear. They have
the right to do this, because since they have paid for the credits with
'dollars,' the credits belong to -them-. You are under no obligation to
buy them at that price, of course, but neither are you entitled to
dictate what that price should be.

If you feel that the time it takes you to earn enough gold to buy a
credit is not worth the reward of the credit, the I respectfully submit
that you consider the time it takes to earn enough of these 'dollars' to
buy a credit, and determine which is cheaper in those terms. You might
be surprised at the results should you do so.

Cordially,

Maklyr Wildfang /|\

Penned by my hand on the 14th of Miraman, in the year 336 AF.


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Public News Post #11181

supply and demand

Written by: Maklyr Wildfang, Oracle of Demeter
Date: Sunday, June 1st, 2003
Addressed to: Leafwalker, Zekk Danial-Drake


Zekk,

Your shrill calls for the credit market to be scrapped will hopefully go
unheeded. Let me share with you a bit of wisdom: the price of a scarce
good will rise until the demand for it is in equilibrium with its
supply. I therefore find it no surprise that the lowest selling price
for credits is higher now, when there are ~100 credits for sale, than it
was when the credit market was reasonably new, and there were often over
1000 credits for sale.

Further, you don't seem to understand that the average price listed in
CREDITS FOR SALE is essentially a meaningless number. The two numbers
that you need to make any sort of judgement about credit pricing are the
lowest asking price, and the average -purchase- price (i.e. what people
actually paid for the credits) over some period of time. The latter
number is unfortunately unavailable.

Lastly, you seem to be under the impression that you have some right to
buy credits at some arbitrary price in gold, whether that be 2k or 2.5k,
or some other number. This is clearly not the case. The only place you
can have the guarantee of a reasonably fixed price for credits is in the
otherworldly market, where the prices are denominated in 'dollars.' In
open trading, people will charge what the market will bear. They have
the right to do this, because since they have paid for the credits with
'dollars,' the credits belong to -them-. You are under no obligation to
buy them at that price, of course, but neither are you entitled to
dictate what that price should be.

If you feel that the time it takes you to earn enough gold to buy a
credit is not worth the reward of the credit, the I respectfully submit
that you consider the time it takes to earn enough of these 'dollars' to
buy a credit, and determine which is cheaper in those terms. You might
be surprised at the results should you do so.

Cordially,

Maklyr Wildfang /|\

Penned by my hand on the 14th of Miraman, in the year 336 AF.


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