03-06-2014, 07:16 AM
The massive inflation that has occurred on Gaia was most likely the result in the artificial increase in the gold supply. The currencies used on Gaia and Menewsha could be considered fiat currencies because they are not backed by a physical commodity. Because fiat currencies are not backed by a physical commodity its worth is solely based on what people perceive that currency to be worth which makes them very susceptible to inflation. When Gaia drastically increased the money supply the buying power of the currency was drastically reduced, prices rose, and viola. Inflation. As long as Menewsha does not meddle with the money supply the market should adjust accordingly on its own.
However, it is only natural for prices to increase as supply shrinks and demand increases. The supply of contribution items are finite and as the community grows the rarity of those items increases. If supply is limited individuals are willing to spend more to have that item. In the simplest term supply and demand is a vital mechanism in determining how much of each resource gets used where.
So, this leads to a completely related question: how do you price your items? My first intention was to base the price on the average marketplace price, but the average marketplace price might not always reflect the items true value. Or it could be, who knows. I want to give people fair deals but part of a fair deal is when both parties getting their moneys worth. So what do you use?
Last edited by Admonish Misconstruction; 03-06-2014 at 07:49 AM..
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