NBG doesn't work in the general case, it fails because people lie, they lie often, they lie to people they call their friends.
I abide by whatever loot position the rest of the group takes. I've certainly have passed on many items that I knew were upgrades for others, although I can't be 100% certain that they hadn't sold a better piece at some earlier time. I've seen players do the "I camped all my stuff" routine and have it turn out multiple times that it really meant "I saved all my pp & cash loots for my twinks because I can get randoms in PUGs to equip my main by claiming need".
NBG can work in a guild context, but only if being a member of the guild is more desirable to the potential liar/cheater than the pixels they're drooling after. Lotta toons in high end guilds who parasited off earlier guilds (either the player hopped guilds or the account was sold/traded), rewarding that shit is the real crime of the TMO's of this world against their server communities.
Final point: It's all greed. You play how you like and I hope you have a good time doing so, but don't expect me not to laugh at the notion of dressing up any player's pixel greed by calling it need. It's all greed.
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