Understanding prices in PoE (ECONOMICS)

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Mivvi wrote:

I love a thread about economics. A small level of inflation is good; not hyperinflation.

Luckily, PoE isn't experiencing hyperinflation so no need to worry about that.

I forgot most of my economic stuff, but if you can can you expand on the bolded?

I mean....yes, maybe that holds true for the "real world", and it does have to do with a lot of other shit (government funding, bla bla bla). But in PoE it is not exactly the same, so how does it apply in PoE?

For example, in today's world, there could be an 8% annual inflation. However, next year, the salaries of every worker are adjusted based on this inflation.
If today my salary is 100$ per month, then next year after the 8% inflation my salary is adjusted to 108$ month (oversimplifying this of course).

Now back to PoE.
Today, my "salary" is 100 Chaos per month. I would grind X hours per day, Y days a week, getting Chaos Orbs at a R chaos/hour rate. So my 100 orbs come from X*Y*R. X and Y are the "effort" I put into the game (the time I spend on it), while R is fixed, it's a variable GGG defined in their server.
Now, PoE orbs suffer inflation of 8%. When before I needed roughly 100 Chaos Orbs to buy, now I need 108.
However....where is my "salary" adjustment?
I will keep playing PoE the same amount of time, so X and Y don't change.
GGG surely won't make adjustments to orb drops based on the economy this way right? If they don't then R doesn't change (if they do....well I dunno I didn't know about that lol).
So X, Y and R remain the same, thus I still get X*Y*R Chaos Orbs a month, yet now I need to gain 8 more Chaos Orbs per 100 to buy the same stuff.
I lose acquisitive power. How is that "good"? It was a "small level of inflation" still, but everything remains the same except that now I can buy less stuff with my currency.

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Destructodave wrote:

Difference is, people can print money in these economies, by using RMT and/or botting services, which exist. Therefore, prices get inflated across the board and its hard for average joes not printing their money to afford it, and their only recourse is to get lucky with RNG and find said items worth multiple exalts/chaos to trade.

Damn I didnt know that RMT/botting services existed :/

Anyways, It would be AWESOME iff GGG provided data of the money supply in the game. It is essential to understand prices. Are people holding currency in order to trade? Or more currency is being used in crafting? It would be cool to know the data.

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QueenTakesKnight wrote:

Inb4 central bank of Wraeclast.

PLEASE NOOOOOOOOOOOOOOOOOOOOO :D

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Mivvi wrote:

I love a thread about economics. A small level of inflation is good; not hyperinflation.

Luckily, PoE isn't experiencing hyperinflation so no need to worry about that.

But you're correct - price is definitely subjective…

But it's also negotiable. This is what I dislike about the trading system: when you give an offer for something, you're obviously going to try and give the lowest possible price that you think you can thus maximising your utility. Most of the time, sellers do not see this as a chance to haggle but as a take it or leave it offer. I'd like more people to realise that haggling is something we are supposed to do in PoE.

Thoughts?

True there should be more negotiation in the game. But idk maybe each attempt to sell an item is a process of negotiation. If a guy tries to sell his item for 5 exalts several times and no one buys he will probably drop the price or just keep the item I guess.

Actually inflation is an expansion in the money supply, the rise of prices is only a symptom of this -contrary of the current interpretation of inflation which says that it is a general increase in prices-. To understand PoE pprices properly we should have data about the money supply, like how many chaos orbs or exalts orb are in circulation -the demand for that money- and all that data.

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Mivvi wrote:

I love a thread about economics. A small level of inflation is good; not hyperinflation.

Luckily, PoE isn't experiencing hyperinflation so no need to worry about that.

But you're correct - price is definitely subjective…

But it's also negotiable. This is what I dislike about the trading system: when you give an offer for something, you're obviously going to try and give the lowest possible price that you think you can thus maximising your utility. Most of the time, sellers do not see this as a chance to haggle but as a take it or leave it offer. I'd like more people to realise that haggling is something we are supposed to do in PoE.

Thoughts?

I'm sorry, if I wanted to argue with [Removed by Admin] I would go to reddit/4chan and start an argument. When that becomes necessary to progress in a game (which it has become) it's time to find a new game. Given the rather low overall population of the game I'd say others feel the same way.

hi,

I am a beginner player and i can't tell you if it's a good economic system but one thing is .... i'm unable to make any trade with other player because i don't know how much gem/orbs or any stuff cots.

When you grind so much, when you work hard to have things you don't want to pay more than what it's worth.