Dramatic fall in prices.

[hohto]

This is my thoery,

 

 

 

Recently there have been a lot of new items And everybody Want like to Purchase some And try it out Selling their Items for a Quick sell, And rares are going up as god wars Armour/Weapons, Will not be a high Fixed price for long so they invest in a rare.

 

 

 

You forgot the part of people getting rich off the new items and being able to invest on rares.

[JimmyMcNabb]

I remember buying my guthans for 10m...

 

 

 

*sigh*

 

 

 

and my whip for 5mil...

 

 

 

*sigh*

[Tijger2099]

This is my thoery,

 

 

 

Recently there have been a lot of new items And everybody Want like to Purchase some And try it out Selling their Items for a Quick sell, And rares are going up as god wars Armour/Weapons, Will not be a high Fixed price for long so they invest in a rare.

 

 

 

You forgot the part of people getting rich off the new items and being able to invest on rares.

 

 

 

Agreed, secondly I do not believe in james' theory at all, people aren't gonna sell alot of their items just to try on an item and sell it 5minutes later. For that they could just check some screenshots or read somewhere about the bonusses. It costs them alot of time and they will eventually lose money on selling and buying all your items back in such a short period of time.

[hohto]

Agreed, secondly I do not believe in james' theory at all, people aren't gonna sell alot of their items just to try on an item and sell it 5minutes later. For that they could just check some screenshots or read somewhere about the bonusses. It costs them alot of time and they will eventually lose money on selling and buying all your items back in such a short period of time.

 

 

 

In a larger scale that's a possible scenario tho. If an expensive item seems to be worth every penny, people will sell quite a lot stuff to be able to obtain it. However only few random lunatics will buy new items just to test them.

[SwreeTak]

Yes, I have noticed that too. But I don't got a clue why it is so :S

[adsee5]

i believe that since people want the gw stuff more people are saving up meaning less money circulating in the runescape economy meaning less people who are willing to spend the money because of godwars.

 

 

 

also with chinompas many people are burning money to get 99 range.

 

 

 

godwars demand went up meaning more money for suppliers meaning more rares for them also causing less circulation of money as they normally spend it on rares and poeple with 500m wont go and buy barrows...

[Solidus_77]

Obviously, the change in price of barrows sets can be either one of two things. Decrease of demand, or increase in supply. Things such as substitute goods are all determinants.

 

 

 

In this case, it's pretty safe to assume that this was a decrease in demand.

 

 

 

Now for the more interesting question: what's the effect on phats?

 

 

 

It can be demonstrated economically:

 

 

 

Phats is a luxury good. For a good to be a luxury good it means that, for example, if someone's income rises by two, the quantity consumed of that luxery good will increase by more than two. In other words these are goods that we buy more if (proportional to our income) if our income increases.

 

 

 

The godwars dungeon has caused many people's income to substantially increase therefore they will buy more luxury goods and therefore, since phats are luxury goods, more phats will be bought. Since the demand for phats increases, they will rise in price.

 

 

 

A couple of you mentioned this already, but what hasn't been said yet is that this applies to all goods that can be qualified as "luxury goods" which but is not only limited to rare items.

 

 

 

As for these inflation theories. I do not see where people are getting those ideas. If you want to prove inflation is occurring right now, you need to know the price index, or price of all goods in the economy and see by how much it is increasing.

[Evil_Sabre]

its just a chain reaction a few items drop a little bit in price, so everyone freaks out and desperately tries to sell that item for below the real price in fear it will drop even more, i bet those prices will be back to normal in a matter of weeks or days

[Tijger2099]

Solidus. I did name that your theory (which is basically the same that I gave) also does apply to mainly ALL luxury goods, only I called them them elite-items (items that can only be bought when your income or wealth increases).

 

 

 

Secondly I already admitted that the term inflation is not correct in this situation, the basic idea most people have with inflation is that more money is circulating in the economy, therefore I used the term inflation, even though I know it's not really an applyable term for this situation, but I tried to make that clear by going into much more detail about what I meant.

[Solidus_77]

Solidus. I did name that your theory (which is basically the same that I gave) also does apply to mainly ALL luxury goods, only I called them them elite-items (items that can only be bought when your income or wealth increases).

 

 

 

Ok well at least I demonstrated it. :wink: (It has to increase by more than one's income increases by the way. I don't want people to confuse that with a normal good that just increases as income increases)

 

 

 

Glad to see you figured that out as well and sorry i overlooked it. :

 

 

 

 

Secondly I already admitted that the term inflation is not correct in this situation, the basic idea most people have with inflation is that more money is circulating in the economy, therefore I used the term inflation, even though I know it's not really an applyable term for this situation, but I tried to make that clear by going into much more detail about what I meant.

 

 

 

Well the problem is that those people then just assume that ANY change in price of ANY random good = inflation. :wall:

[Tijger2099]

its just a chain reaction a few items drop a little bit in price, so everyone freaks out and desperately tries to sell that item for below the real price in fear it will drop even more, i bet those prices will be back to normal in a matter of weeks or days

 

 

 

That's an imcomplete theory tbh, sorry. The 'few items that drop a little' you talked about don't drop in price without any reasons, try to give reasons why those items dropped in price, and above all mention what kind of items you are talking about, as not all items are affected by any change in the game.

[miss18]

Jagex doesn't like merchants that much anymore lol

 

 

 

Nah the fall in prices is just a normal thing, i put it down to school tbh less kids on rs not such a big demand.

 

 

 

Miss

[ben331]

I don't have time to write a full on essay :P

 

 

 

But I will say that the fall in prices, particularly flax and coal and maples, is irritating me; they are not going back up again.

[Saru Inc]

When items fall slightly, people panic and think they're going to continue falling. Since everyone wants to sell fast and cut their losses, they're basically messing up everyone else also trying to sell, competing with them all to sell for cheaper to just get rid of the items and cut their losses. It's just funny that they're the ones who are creating these dropping of prices situations for themselves.

 

 

 

 

 

:P That's what I was thinking lol.

 

 

 

But, yea, they should introduce a new barrow brother, or make the specials happen more often. Then the prices would shoot up. :twisted:

[miracleman58]

merchant. increased amount of ppl doing barrows and metals.

 

 

 

strange the proce of dfs has rose thou :-k

[Solidus_77]

merchant. increased amount of ppl doing barrows and metals.

 

 

 

strange the proce of dfs has rose thou :-k

 

 

 

Barrows merchants alter neither the supply nor the demand of barrows items.Therefore they are not responsible for this.

[qeltar]

As Solidus said, merchants cannot affect overall prices, only the prices of individual sales.

 

 

 

The problem with Barrows is simple -- it's too easy. I've actually been Barrowing extensively for the last week trying to find the most efficient technique and I've got it down to a science -- 9 minutes per chest.

 

 

 

There are even level 80s doing it.

 

 

 

Too easy = too many items in the game.

[jimbob9999]

simple- Barrows have gone down becuse the demand for them now is lower. They're not the best armour any more, the God armour is.

 

 

 

That would only explain karil and torags.

 

 

 

Dharoks, Verac and Guthans still have unique set effects (Guthans not so much) and Ahrims still hasn't got any new competition.

[Latinoking]

Yay I want warspear to go down...also full veracs.

[hatebringer]

Lately a lot of expensive items have been released into the game (dragon full helm, visage, god wars items, etc.). Causing inflation, making the prices of items such as Barrows go down. However it doesn't work for rares, instead they go up, the inflation causes the money in rs to move from very rich people to people who got lucky with drops of the new items for example, they eventually invest in rares causing the demand to go up = prices going up.

 

 

 

It's basically as easy as that

 

 

 

You basically explained everything in that.

 

 

 

Although, prices for everything have been exceptionally low, i remember santas for 30M, and guthans for 12m

[Goblin512]

It's just deflating- that's what happens in all economies...

 

 

 

It'll inflate soon enough (so buy stuff now!!!)

[Solidus_77]

It's just deflating- that's what happens in all economies...

 

 

 

It'll inflate soon enough (so buy stuff now!!!)

 

 

 

Just because prices have decreased suddenly doesn't mean there's deflation and it certainly doesn't automatically imply that they MUST all rise again soon. For deflation, you need ALL prices to fall, and fall at a sustained rate. Even then, why would they suddenly increase again? There is no cycle of inflation following deflation. That's just your baseless speculation.

 

 

 

We already have figured out what the cause of the fall in price is here, so you're absolutely incorrect

[nicrune007]

Great!

[philskill]

I balme the dirty merchants.

[qeltar]

I balme the dirty merchants.

 

 

 

Then you, like most RS players, have no clue about how economies work.

 

 

 

Merchants cannot drive prices down.

 

 

 

~q