Options/Futures markets and liquidity in p99

[koros]

"In the long run we are all dead" -John Keynes

My undergrad degree was in economics so I can speak to this somewhat.

I completely agree with you about the supply and demand equilibrium... in theory or on a long enough time frame. But observations on actual item prices has shown that certain "high demand" items constantly defy the expected effect of an ever increasing supply.

A couple of points... "production" (people farming said item) is based on the selling price of an item, so that finds a quick natural equilibrium. People aren't out farming Scepter's of Rahotep, just because there's a low supply of them.

Additionally, a lot of items are illiquid, so they end up sitting on alts and never being sold.

Compare the price of a FBSS pre-kunark to now, or a Fungii 6 months ago to now. Demand shocks on p99 clearly have an asymmetric effect on prices rising vs. falling, just like markets in real life (except in reverse).