Skip to Content
10-28-2010 @ 9:29PM
You're right that if it truly was competitive, new entrants wouldn't matter to an individual's profit. However, I think that analyzing the number of players on the AH suggests it is most definitely not competitive. The major thing lacking is having "unlimited number of sellers." Take the glyph industry, which is probably the closest to competitive of the sectors. Export the data, sort by poster name, and do a pivot table to count the unique sellers. There are 18 on my server, most of which are not big players. Every other market has fewer posters. Using the Cournot formula above, adding a 19th glyph maker of average productivity (say he just read Basil's post and got super excited by free money!) would decrease the average glypher's profit by 5.2%. In other words, the number of sellers on a server is small enough that p =/= ATC, and so Basil's posts do decrease profit of the Auctioneers.
First time? A confirmation email will be sent to you after submitting.
Members enter your username and password.
Enter your AOL or AIM screenname and password.
Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.
When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.
To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.