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Faction/Deadspace Module Prices with new marketable ability.

Author
Azemar
The Scope
Gallente Federation
#1 - 2012-04-27 23:25:46 UTC
Forgive my ignorance, could someone please explain why the ability to put deadspace and faction modules on the market has significantly decreased their price?

My rudimentary understanding of economics tells me that since supply and demand didn't change, the prices should balance back out and this is only a short term backlash of an easier method of buying.
Tau Cabalander
Retirement Retreat
Working Stiffs
#2 - 2012-04-27 23:36:41 UTC
Prices that can be updated every few minutes.

Easier to track trade volumes and pricing history.
corestwo
Goonfleet Investment Banking
#3 - 2012-04-27 23:41:04 UTC
Give it a couple weeks to shake out before making a price judgement, really.

This post was crafted by a member of the GoonSwarm Federation Economic Cabal, the foremost authority on Eve: Online economics and gameplay.

fofofo

Baljos Arnjak
Dark Praetorian Order
#4 - 2012-04-28 00:28:39 UTC
My understanding is that there is more competition now. Before, contract fees played a big role in how often they were updated and updating too much would eat up your profit margin, so you only really updated when the contract lapsed. Competition between sellers was balanced according to this (and how much buyers were willing to pay). Now that that formula has been changed, the competition between sellers is much higher, which means that prices will drop.
Cha Cha Tatina
Lord Jita's Big Gay Corp
#5 - 2012-04-28 02:15:32 UTC  |  Edited by: Cha Cha Tatina
Because ....

a) module sits there for 3 months instead of 2 weeks
b) update price every 5 minutes, constantly pushing price downward
c) its a lot easier than setting up a contract

edit: and d) I noticed this for LP store items, there are people that have HUNDREDS of some items, and setting up that many contracts is just not possible. now they just right click this huge effing stack and boom, done. so WAY more supply.
Zarific
Frekmacinations
#6 - 2012-04-28 03:17:23 UTC
Azemar wrote:
Forgive my ignorance, could someone please explain why the ability to put deadspace and faction modules on the market has significantly decreased their price?

My rudimentary understanding of economics tells me that since supply and demand didn't change, the prices should balance back out and this is only a short term backlash of an easier method of buying.



Im no econ major but a major assumption underlying supply/demand is perfect information and costless information. The market in Eve offers far more information at a reduced cost over the contract system. This alone would likely push price downward because those "in the know" can't extract profits from those "not in the know" as easily.
Azemar
The Scope
Gallente Federation
#7 - 2012-04-28 05:24:51 UTC
Baljos Arnjak wrote:
My understanding is that there is more competition now. Before, contract fees played a big role in how often they were updated and updating too much would eat up your profit margin, so you only really updated when the contract lapsed. Competition between sellers was balanced according to this (and how much buyers were willing to pay). Now that that formula has been changed, the competition between sellers is much higher, which means that prices will drop.



Thank you that explains it perfectly.
Onlyasandwich
NewsRadio
#8 - 2012-04-28 05:31:36 UTC
I must admit I was a little worried about this change, as I do quite a bit of contract trading, but I've been pleasantly surprised with the results of the transition thus far.
Azemar
The Scope
Gallente Federation
#9 - 2012-04-28 05:34:53 UTC
Onlyasandwich wrote:
I must admit I was a little worried about this change, as I do quite a bit of contract trading, but I've been pleasantly surprised with the results of the transition thus far.


I, sadly, do not share the view. Being one who makes a large portion of his isk off deadspace and faction modules, I have taken a hit. I am just holding them for a week or so for the prices to balance back out.
Baljos Arnjak
Dark Praetorian Order
#10 - 2012-04-28 09:38:18 UTC
Azemar wrote:
Onlyasandwich wrote:
I must admit I was a little worried about this change, as I do quite a bit of contract trading, but I've been pleasantly surprised with the results of the transition thus far.


I, sadly, do not share the view. Being one who makes a large portion of his isk off deadspace and faction modules, I have taken a hit. I am just holding them for a week or so for the prices to balance back out.


Same here. I made most of my isk from blitzing missions. The low isk/lp numbers hurt, but having to babysit orders to move modules is just as annoying. Depending on how things are in a month or two, I'll have to re-evaluate how I run missions or maybe find a new activity altogether. No big deal, adapt or die as they say.
clixor
Celluloid Gurus
#11 - 2012-04-28 10:36:53 UTC
Cha Cha Tatina wrote:
Because ....

a) module sits there for 3 months instead of 2 weeks
b) update price every 5 minutes, constantly pushing price downward
c) its a lot easier than setting up a contract

edit: and d) I noticed this for LP store items, there are people that have HUNDREDS of some items, and setting up that many contracts is just not possible. now they just right click this huge effing stack and boom, done. so WAY more supply.


adding:

e) transparancy, 'casual' uninformed buyers won't hugily overpay anymore.
f) opportunity cost is down, if a player is willing to spend 2b on a mod, then paying 100-300m above average prices is small change, i.e. people just don't care, they want the mod.

Kaanchana
Tax-haven
#12 - 2012-04-29 11:17:42 UTC
Also i just realised that empire faction hardeners are way more expensive than pirate factions. I assumed due to them being lp items, they should be cheaper than pirate drops. Can someone explain why?

ex: True sansha em hardener is abt 10 mil where as Imperial navy em hardener is 40 mil in amarr.
corestwo
Goonfleet Investment Banking
#13 - 2012-04-29 14:57:39 UTC  |  Edited by: corestwo
Azemar wrote:
Onlyasandwich wrote:
I must admit I was a little worried about this change, as I do quite a bit of contract trading, but I've been pleasantly surprised with the results of the transition thus far.


I, sadly, do not share the view. Being one who makes a large portion of his isk off deadspace and faction modules, I have taken a hit. I am just holding them for a week or so for the prices to balance back out.


If, despite knowing that this patch was coming, you were still holding deadspace & faction items going into it, that's your own fault and I suggest you pay more attention to test server notes and things like that in the future.

Kaanchana wrote:
Also i just realised that empire faction hardeners are way more expensive than pirate factions. I assumed due to them being lp items, they should be cheaper than pirate drops. Can someone explain why?

ex: True sansha em hardener is abt 10 mil where as Imperial navy em hardener is 40 mil in amarr.


There are a few factors here. The first is that people tend to neglect the non-adaptive hardeners for both armor and shield in favor of higher yield and volume items such as damage mods, adaptive hardeners, and so on. The few who do opt to buy empire faction armor hardeners are then able to list for a very high (albeit unrealistic) price. This effect would carry over to the market and would cause the price to remain high.

On the other hand, with "Exact Match" on by default (forcing you to pick an exact item if you searched, for example, "Armor EM Hardener"), information opaqueness was enforced and many players may not have realized that such variations existed. Another example can be had comparing deadspace and officer modules - Pithum C-Type vs Gistium B-Type vs Kaikka's Modified, for example. Being able to easily see all of them on the market means the obviously overpriced kaikka's may go untouched and will eventually converge in price with the others.

However, those two factors work against each other, so it's hard to say for sure which one wins. Big smile

This post was crafted by a member of the GoonSwarm Federation Economic Cabal, the foremost authority on Eve: Online economics and gameplay.

fofofo

Hemmo Paskiainen
#14 - 2012-04-29 15:08:31 UTC
minerals you mine are free? or in this case faction mods you find


If relativity equals time plus momentum, what equals relativity, if the momentum is minus to the time?

Belloche
Caldari Provisions
Caldari State
#15 - 2012-04-29 15:30:31 UTC
Kaanchana wrote:
Also i just realised that empire faction hardeners are way more expensive than pirate factions. I assumed due to them being lp items, they should be cheaper than pirate drops. Can someone explain why?

ex: True sansha em hardener is abt 10 mil where as Imperial navy em hardener is 40 mil in amarr.


The main reason for that is the price of the tags needed for the lp store items. If you need 200M worth of tags for a 5 run bpc plus isk and lp, the minimum you can charge per item is 50M+ in order to make anything on the deal.
Esan Vartesa
Samarkand Financial
#16 - 2012-04-30 17:24:07 UTC
I'm thrilled that this change has been made, because now CCP will finally have much more accurate (read: easier to look up) data on the various faction items. This in turn will help them rebalance the various LP stores, which are a mess.
Ashina Sito
Center for Advanced Studies
Gallente Federation
#17 - 2012-05-01 00:23:25 UTC
Kaanchana wrote:
Also i just realised that empire faction hardeners are way more expensive than pirate factions. I assumed due to them being lp items, they should be cheaper than pirate drops. Can someone explain why?

ex: True sansha em hardener is abt 10 mil where as Imperial navy em hardener is 40 mil in amarr.


Same thing with Caldri and Gallente Antimatter.

Caldari AM typically costs 30% more then Gallente AM even though far more people grind up Caldari LP. The reason is EFT defaults to Caldari AM with hybrid guns and so everyone just uses that. They never bother to look at anything else.