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29653: Re[2]: [MUD-Dev] DESIGN: Active and Inactive currency
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From: Alistair Milne <krug@krug.org.uk>
Newsgroups: nu.kanga.list.mud-dev
Date: Sat, 24 Apr 2004 15:05:42 +0200
References: [1]
Organization: Kanga.Nu
Money does eventually pool at the crafts-people, granted, but the
money only stays with them if their product is in constant demand,
enough that they can make as much of it as they like and it keeps on
flying off the shelves like hot cakes, or indeed like hot cookies.
If that's the case then more competitors will come along to fill the
extra need until market saturation is met. And then at that point,
it only takes one rogue crafts-person to break the cartel and sell
their product just a little cheaper and then the whole house of
cards tumbles and they're suddenly all into negative profit and
going out of business faster than a five year old can eat raw cookie
dough.
Why would someone do that, break the cartel? Because even though
they reduce their margins a little, they still get more overall
profit for a while because they get more customers looking for a
bargin. Everyone's always looking for a fast buck...
.a
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