**** Economy and Auction House (Lordaeron)
This thread is only to discuss the current state of the Auction House, mainly on the server Lordaeron. Please feel free to leave other suggestions down low, I'm not an economic expert but I feel as if listing the current issues with the economy is a priority for the reasons below.
1. Discourages success for newer players - My first point is a big one and could contribute to the overall success of the server going forward in terms of building upon the already very successful and populated community.
2. Gold-buying - A major reason that people buy gold is because they can't afford stuff, and it doesn't help when the market is over priced to the point that for people that only have one toon they think buying gold is a viable option.
3. Less Spending - Now because the prices are so high, people are inclined to spend less. Now what happens is now people hoard their gold so less gets spent, distributed, and taxed. So because of those three things the prices continue to increase because the amount of gold an average player carries just keeps getting higher and higher so it's like a cycle. So the more gold people have the more expensive things get and vice versa.
4. People are less equipped - Now this is more towards the lower levels because groups might be a little harder to make to do dungeons, but because prices are so high people are less adequately geared and rely heavily on vendor gear making the game way harder than it should be. This is kind of a re-irradiation of my point in a certain way.
5. Cities would be more populated - If people came to the auction house to buy and sell gear more often the capital cities would be much more populated, with much more needed activity in cities such as Orgrimmar and Stormwind.
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Next I'd like to drill home a couple of adept strategies that even in the smallest ways can help shape the economy back to a healthy shape.
1. Undercutting - Now believe it or not, undercutting is a very very healthy thing for the market. It creates more sales and competition for that item(s) for the short period of time that the price is lowered. Eventually the prices return to normally but by undercutting you're encouraging people to spend their gold and creating competition among other sellers of those items.
2. Using the AH most often - Now this is a more obvious one but the more items there are on the AH, the more the prices fluctuate and eventually lower and increase for short periods of time. This helps the economy by allowing players to sell low and buy high, but a con is that people sometimes use these to create monopolies which we'll touch on later.
3. Quantity over Quality - Now in real life this is thought as not a good strategy, but WoW is still just a game so that means every "copper bar" is the exact same. So lets say you post 1 stack of copper bars for the regular price, for sake of the argument lets say it's 5G. Now the more time your item stays on the AH the less profit you make per hour, but if you undercut by a gold you eliminate the time gap and generate a faster income without decreasing quality.
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Next I'd like to summarize monopolies and explain why they're so bad for economies and damage it severely.
Monopolies are when 1 person controls the entire sale of 1 item thus also controlling it's price. Now if 1 person is selling Linen Cloth and sets the price at 10 G per stack (just a number, not a portrayal of reality) and no one else competes with that person or posts enough to where he's overwhelmed he becomes the standard. Meaning that most people will find that 10G is the normal price for a stack of Linen Cloth not knowing that it's vastly overpriced, and if they do they cannot compete. This creates so many problems as you can see and this is why people need to utilize the auction house much more frequently to eliminate monopolies on the server.
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Lastly, I'd like to say that there are some points in this post that are re-iterated in a way and I apologize for that but I really like to drill a lot of these points home. So thank you very much for getting this far and please leave suggestions and comments down below
SPECIAL THANKS TO - Dr. Shlong, Uruzka, and Xikar.
ARTICLES ON ECONOMY -
http://www.businessinsider.com/how-t...e-chart-2012-8
http://www.cnbc.com/2017/02/20/reute...bank-says.html
http://www.investopedia.com/terms/m/...sticmarket.asp
https://www.quora.com/Why-are-monopo...-for-consumers
