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11-18-2010 @ 9:23AM
You write that middlemen benefit buyers and sellers. Is that really true?Middlemen do their business for a profit, so statistically they raise the price of their traded items. When they constantly check the auction house, I'll have a lesser chance to make a bargain or to stock up on the mats as cheaply when there's good supply.I don't want to condemn the middlemen, I just challenge your statement that they are generally beneficial. They even things out, but for a price (which can be hefty, if they get near market control).
11-18-2010 @ 10:47AM
Capitalism. It works. Obviously it's "middle-men" not "middle-man", so there'll always be competition. Too many people play WoW. The seller gets to sell to someone at the price they wanted. You, as an enterprising auctioneer, recognize that the price they want is below the usual value of the item. You buy it, satisfying them.You now have to sell the item(s), and can list item at it's value if there's little competition, or even slightly below value while still making profit because you bought it cheap. Which is where capitalism gets beautiful because everyone made money, while the price decreased. Happy seller, happy buyer, happy middle-man. Obviously a monopoly makes for unhappy buyers. Hope that helped!
11-18-2010 @ 11:06AM
the economic argument is that a middleman (warehouser in this case) will smooth out the prices in the marketplace, by slurping up excess supply during the rich times and putting warehoused goods on the market during the lean times. Both consumers and manufacturers lose some of their POTENTIAL value/profit to a middleman but they GAIN the ability to run their business consistently with out having to close up shop based on swings in the ask/offer price of a commodity good. If they run their business consistently, they make more money due to increased volume of sales.of course, an astute farmer/crafter would read this argument and realize that warehouse space in wow is basically free and there is no reason not to be your own middleman. Everyone who farms or crafts should always be watching the price of mats to determine if they should be selling/using the mats or warehousing them until their potential value is increased.
11-18-2010 @ 7:00PM
@Matt warehousing is indeed cheap, however so is a gathering skill. The time a farmer puts into farming must be compared to the time they put into warehousing. That is, of course, assuming they have enough gold to afford to buy and hold stock, as well as the risk tolerance to handle losses when they make bad buys.
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