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3-15-2010 @ 5:03PM
I'm often deeply saddened at how few people understand the concept of opportunity cost.
3-15-2010 @ 5:15PM
Me, too.But then I think about the opportunity cost of thinking about people not thinking about opportunity costs, and quickly start thinking of something else.
3-15-2010 @ 5:51PM
Me too, but then I use that opportunity to buy their cheap mats and craft the items I make for half the effort and still receive a profit.I can easily spend my time farming for Frost Lotus, but it requires less time and rewards more gold to buy them off the AH and instead craft those dandy flasks. After all, despite the slightly higher droprate, they are still a massive burden to get.
3-15-2010 @ 6:02PM
One thing this article doesn't take into account is utility [or "happiness"] maximization (as opposed to simple profit maximization). For example, every hour spent farming is an hour you didn't spend doing something you might enjoy more. For example, although I might make 500g / hour farming and I only make 150 g / hour running heroics, I enjoy running heroics quite a bit more, and as such, running heroics to farm gold may maximize my utility.
3-15-2010 @ 8:17PM
I think Niiru is right, there is more to the game than just running an econ simulator or working out every price point on a spreadsheet. I know for me certain things are a trade off depending how tedious I consider them. For me tedium is a bigger drain, and weighs more in my decision making than how much gold I am making per hour. That's why some things I am willing to farm and some things I am willing to pay for, but in the end its what makes me happy that matters most.
3-16-2010 @ 9:36AM
To Niiru and Ash: The author of this article is specifically talking about pricing farmed items. He doesn't discuss the time farming, or play. He is merely pointing out that if you farmed something there is a price. You should consider that price when you are using your mats, or pricing your mats to sell to someone.As an example. You want to go quest. You enjoy questing, woo hoo you sick masochist. As you are questing you incidentally farm up a couple stacks of icethorn. Now you're a scribe. We'll say for the sake of argument that icethorn is going for twice what goldclover is going for on the AH. Do you mill your icethorn, or do you post it and buy up all the goldclover? Maybe you really don't enjoy the AH, but if icethorn is selling reliably enough and you won't have to repost then it's a fairly cut and dry decision. You buy out the goldclover and sell the icethorn and mill the goldclover.Now the actual relationship is much more complex than that, if everyone took this action then herbs of a single tier would quickly equalize in price despite varied utility from alchemy. etc. etc., but the example shows what he is talking about and that it is a separate issue from doing what you enjoy doing in the game. He is talking about realistically evaluating the resources you gather while playing the game you enjoy playing. The issue of "opporunity cost" as it relates to time spent is a much thornier and more complex topic.
3-16-2010 @ 1:15PM
Actually, opportunity cost in WoW's economy is complicated, and factors can push the price of commodities lower than you might think, given the time it takes to farm or create them.Most materials can be slowly gathered at next to no opportunity cost during the normal course of play. Running a dungeon will probably net your one or two stacks of cloth, which are essentially "free." (That is to say, you are sacrificing very little actual time gathering them). The same goes for ore and herbs gathered during normal questing. You won't get them as quickly as dedicated farming, but you will get them at an extremely low opportunity cost, which, in turn, affects how you price them on the AH.So, before you judge to harshly, remember that World of Warcraft is a game above all else, and this changes the way a lot of these classical economic ideas work.
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