Idea how to solve undercutting - let it be profitable for all!

[franto]

Hi guys,

everyone talking about how undercutting is wrong, but imagine if it would work like this:

Every item price would be rounded according it's value. When the price is high, rounding would be higher.

For example:
- values less then 1g -> rounding 1c
- values less than 10g -> rounding 1s
- values less than 100g -> rounding 10s
- values less than 1000g -> rounding 50s
- values less than 10000g -> rounding 1g

So for "ordinary" enchant values the price would be like this:
- 700g
- 699g 50s
- 699g
- 698g 50s

Mighty stats:
- 50g
- 49g 90s
- 49g 80s
- 49g 70s

What would this mean for the market? For most people nothing special, but imagine when there are multiple players undercutting each other. Currently when they undercut by 1c the price is still the same. This would force the price going down!

- 10x undercut (with current situation) => price is lower by 10c
- 10x undercut (with rounding) => price is lower by 5g

What do you guys think about it? Would you be happy if blizzard would implement price rounding?

[Mirandrack]

naw, i think ill just keep at what i am doing

[schwank05]

Undercutting is part of every economy so why would you stop it?

[Deleted]

I can't wait for Diablo 3 and people whining about undercutting. I personaly always undercut, not to be mean or crash the price but simply because i think the item isn't worth it and i myself wouldn't buy it for that price. I always leave with profit maybe not as much as possible but that's fine.

[leaks]

Undercutting is neither wrong nor a problem that needs solved.

[Serissa]

Stop playing AH if you can't compete! Undercutting is fine.

[doot]

Stop playing AH if you can't compete! Undercutting is fine.

Your avatar makes your post very amusing. Anyway OP there's no reason to stop undercutting. It is part of economy sure it is rough when someone is using predatory pricing, but hey the consequences of such things in a video game is far lesser than reality.

[jisbilby]

I don't see what this is even meant to accomplish. Make prices drop quicker because there is now a minimum undercut value? That doesn't really change anything, because if somebody has something and they want to sell it, they'll just post it for whatever price they can that is below items already being sold.

Also, your undercut margins seem quite low, 1g drop in the 1000 to 10 000g range is very small. I've seen people undercut by 10g on items that never sell for more than 40g.

[elderamy]

Fine as it is...

Undercutting has it costs, risks and benefits...
So it works as a real market! no problem to solve here...

[pechkin]

There is no point in posting on this forum, you can see only posts from undercutters here and they are insanely biased.

[Deleted]

Sorry you do not understand the AH. The lowest price people cna undercut by is where they make zero profit or even less. For instance as a JC I can lower my prices down to the cost of the raw gem. IF I want to bust the market even more, then I cna make a loss on gems.

Makes your undercutting rule look silly.

[microtonal]

everyone talking about how undercutting is wrong,

Not the people who know how economics works.

[Soisoisoi]

There is no point in posting on this forum, you can see only posts from undercutters here and they are insanely biased.

And if someone said they would like this idea, or have set prices, that would be biased against people who like to undercut, so what?

[neghinitza]

There is no point in posting on this forum, you can see only posts from undercutters here and they are insanely biased.

I curious what you do when you want to sell stuff. You post it at the price as the guy selling the cheapest item or are you undercutting him?

No matter what rules u have in place, there will never be a fantasy land where everyone just posts and sells their stuff, someone will learn how to use the system to gain an advantage.

[egrus]

I curious what you do when you want to sell stuff. You post it at the price as the guy selling the cheapest item or are you undercutting him?

No matter what rules u have in place, there will never be a fantasy land where everyone just posts and sells their stuff, someone will learn how to use the system to gain an advantage.

ofc he/she want us to post at a higher price than he is listing for so he sell first, then we sell our stuff later....

on topic. undercutting is fine. If something is to cheap you simply buy it and reliists it.