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The Gaian Economy
  Makes no sense.
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Martian Princess

PostPosted: Mon Aug 14, 2006 4:36 pm


I don't understand the Gaian economy. At all.

On certain other gaming sites, there are a limited number of items that appear in the shops at a set time interval, generally once every hour or half an hour, or less for certain very large sites like Neopets. Then, supply doesn't quite meet demand, and users are able to resell the items in their shops for an inflated price to people who are not as fast at getting them from the regular shops.

But on Gaia, we never run out of items. If I want some squid pants, I know that I can always go to the Barton Boutique and drop 500g for some squid pants. There will never be an issue of consumer competition, nor will Rufus ever tell me that he is sold out and I ought to go looking in user shops.

And yet every time I go to the market, expecting to find an item for the same price as it is in the shops, or at a discount, I am always shocked to discover that not only is the price not comprable, it is often thousands higher! For instance, I just went looking to see if anyone had more tokens than they knew what to do with and was selling them at a discount price, only to discover that the average price for a single token (worth 1g in the casino and never out of stock) was 100+! There were many being sold for 1000!

I am finding it difficult to believe that the economy of a site this size could be entirely driven by consumer ignorance. Are people actually making consistent money on their 10x more expensive store items? Why? What perversion of the laws of economics is occuring here?
PostPosted: Mon Aug 14, 2006 5:38 pm


I’ve noticed that as well. I’ve managed to once get a Gaia store item I was looking for, for less in the market place. But that was about only 100g less.

I don’t know for sure why they think people will spend 10x the amount a store item is worth. When you click on the marketplace store links, there’s even a spot called ‘store price’ that tells you what the item is actually worth.

It may be that there are enough Gaians out there who don’t think their purchasing decision through. But seeing how hard it is to earn gold, I know I try to be careful with my buying decisions. And I’m still just a ‘noob’.

It may be that people are desperate for gold. Stuff on Gaia is expensive. And like I said, gold can be hard to earn – especially if you don’t have a lot of time to spend earning it.

If you have an item worth 10g that you don’t want, and you put it on ‘sale’ for 100g, and it takes a year to sell to someone who doesn’t know their getting the short end of the stick, you still come out ahead.

You are right that the economy here doesn’t make sense. And often times it seems absolutely corrupt.

Another reason does come to mind. The bidding. People are competitive, especially for items they want. And bidding prices usually tend to be less then the store prices, while the buy prices are set higher. Then people bid for the item they want in order to get it for cheaper, but who knows how often they loose track of how much they’re spending? If you get competitive and no longer pay attention to the worth of the item, you can end up spending more then you intended.

The same thing happens on E-bay. People get competitive and end up buying things for way more then they are worth.

You could always try pming the market storeowners who set the ‘buy’ option for items at more then their worth and ask them how often Gaians ‘buy’ at the inflated price as well as how often the bidding wars end up over the in store price.

HereThereAndBackAgain


gamer014

PostPosted: Tue Aug 15, 2006 4:00 pm


Yeah I know. I was checking on the inflation prices on some of the donation items and shop items and the inflations for the expensive shop items and donation items skyrocket about after 2 or 3 months the item is out. I want one of the ninja fore-head protectors but they're 450k, I don't think a whole lot of people are going to have that kind of money.
PostPosted: Tue Aug 15, 2006 9:20 pm


The inflated prices of store items is just stupidity. Anybody who buys at those inflated prices are either stupid or generous. Now donation items are another story. They used to be cheap, 5k in the market. Then came the Kiki, those were so popular that they jumped to 10-12k in a matter of a day or two. This was also when donation items were beginning to be able to be used in several ways. A few were still at the regular 5k but then came other popular ones like the guitars that shot up quickly. After that, they just began to start in the 10k range.

KaguraOfTheWind


Elise Bear

PostPosted: Wed Aug 16, 2006 6:37 am


i know u mean i remeber in i fisrt got my some of my stuff it was cheat but now if i want to get another it will cost money to get
PostPosted: Fri Aug 18, 2006 12:49 pm


A lot of the donations sky rocketed.
Like horns, chain wallet, ankles.
It's crazy right now but it's good for those early users.
:3

zynii


Impish Desires

PostPosted: Fri Aug 18, 2006 1:58 pm


how some people get away with over pricing items- People who don't know an item is in a certain shop don't know they're getting a bad deal

Inflation can rock if you own the item in inflation- it can stink if you're questing for it.... sorta a love hate thing going on...
PostPosted: Fri Aug 18, 2006 8:48 pm


Tarrien
how some people get away with over pricing items- People who don't know an item is in a certain shop don't know they're getting a bad deal

Inflation can rock if you own the item in inflation- it can stink if you're questing for it.... sorta a love hate thing going on...


If they don't know it's sold in a shop for a smaller price, then they really need to learn how to pay attention. if an item is sold in stores, it says so in the marketplace by saying store price.

One of the problems is that the Gaian economy is built in a manner that readily causes rampant inflation. Look at how many ways there are to get gold. Browsing, posting, polls, fishing (you generally profit), word bump, towns, and daily chance, these all create gold. Then you have the shops and the casino, these are the main ways to remove gold from the economy, I know there are some other more minor ones. It's too one sided, gold flows in and trickles out. The marketplace only changes who has the gold. In real life, if you keep printing more money, it just becomes worth less.

The daily chance may seem cool, I mean hey, it's five free things a day, but it's just bringing in a huge amount of gold in with no way to get rid of it.

Then there is the biggest offender: the bump. Bumping should not be limited to a certain area, it should be banned! It adds nothing to the community but brings in probably millions if not billions of gold a day. The people who sit and do nothing but spam all day add very little to the community but have all the best stuff. Because they can get anything and gold is no object, they'll pay higher prices. Since it's selling at higher prices, everybody raises their prices. This means that everybody else has to suffer as they will have to deal with these high prices.

KaguraOfTheWind


Eneldor

PostPosted: Sat Aug 19, 2006 4:19 pm


People who grossly inflate items in their shops are looking for people who are unfamiliar with the item to buy it or don't know the actual price of the item (store item, I mean) and buy it thinking it's cheap.
It's a scam. It usually doesn't work, though, unless the scammer is actually skilled.

When the Bachelor/Doctrate/Masters Credit items come out, the prices are going to sky rocket because they're new. It happened with the bugs, flowers, and trash, casino items (I sold a rare beetle once for 50k) and it'll keep happening with every new item, on Gaia. When the pirate items came out I noticed people trying to sell the parots for double their amount.
It's easier to catch store item scams because on the listing it says how much the item is, but people looking for deals in the vend don't pay a whole lot of attention to it because it makes them that much slower in buying it, which could cost them the item.
PostPosted: Mon Aug 21, 2006 2:11 pm


The gaian economy is confusing too.In the marketplace,everything is cheap but in the marketplace,items are 2x more expensive.Also i don't really get why some items prices skyrocket.I mean Gwees has already just got released and i'm already starting to see people sell them for 20k instead of the usual 9k-10k.Why the need to make items many times more expensive then they should be,I don't know.Most gaians users raise prices unreasonably high just for the sake of possible greed or maybe they just want to complete quests or maybe because in the FAQs they state the mods want to teach you the value of hard work or whatever.

Shibuki-kun


KaguraOfTheWind

PostPosted: Mon Aug 21, 2006 2:23 pm


It doesn't teach you a thing about hard work. If I really wanted to "earn" a lot of gold quickly, I'd just answer polls and copy and paste bumps. There's no effort at all.

If an actual expert were asked to study and explain how the Gaian economy works, he'd look at it for five seconds, say it doesn't and his head would explode.
PostPosted: Mon Aug 21, 2006 5:11 pm


people, its a website that is more about you posting than earning gold. They never run out of items at the store so that when you finally accumulate something of substinance you don't have to go to another store or buy it at inflated prices. I doubt there's anything to this economy than you earn by posting; you buy clothes for you avi. its all about us buying stuff for our avis.


yes i agree that the marketplace is chockfull of people who like putting zeros where they don't belong. I guess they figure we're all stupid.

and this is a website for you to create a little person with cute clothes and chat with others. i doubt any good life lessons come out of this unless you're talking about lessons and such with other people.

dianersj


Kazuma San

PostPosted: Mon Aug 28, 2006 9:58 pm


i don't really understand it as well.. its kinda confusing in a way..
PostPosted: Wed Aug 30, 2006 9:04 pm


Heh...The prices and gold rate are rediculous (2g, what the hell?). Unless people sit around and spam, critique all day in the arena, or click away on their internet browser, I have no clue how they've manage to have 35345+k in savings.

There are newbies that are poor and newbies that magically have extremely rare items after two days of membership... A pair of pants are like 200k. Furthermore, I've only been on Gaia for about a week and I'm not going to be able to log on regularly, due to school. I just think there should be a bit more democracy and a battle system that deals gold (...one that's actually in progress).

TheSixStringKid


Impish Desires

PostPosted: Wed Aug 30, 2006 11:24 pm


Economy here.... I sorta understand it.

-They have unlimited certain items. Such as the Peasant clothing, the G-LOL Lolita clothing.

Things like donation items.... Those are more expensive because once the month is up, they're
A. stuck in someone's inventory waiting till the prices jack up
B. Someone loves the item and wears it all the time
C. More users join every day= More people who want the item= Supply in demand
D. There's some people in the marketplace that buy anything for a bargain then resell it for higher prices.
E. You can't get anymore through that 2.50- you have to get the CURRENT one when you donate
There's more reasons too....

Or things in random event boxes.
A. If the item is really wanted like fox items
B. Or hard to get rid of like "Flower on my Head"
C. Some items are rarer than others to find in the boxes too...
Ect...


With some users gold is easier to make if they're in multiple active guilds. Or they donate to the site. Ect.
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