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General Tabletop Discussion
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Silly economics of DnD
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<blockquote data-quote="bramadan" data-source="post: 52772" data-attributes="member: 1064"><p><strong>high demand != low prices</strong></p><p></p><p>My intersat in economy is purely amateurish but even I know that the demand does *Not* generate downwards pressure on prices either in long or short term. </p><p>If a labour/skill intensive product is in high demand and there is no technology that can expedite its production pressure will be to increase prices not decrease them. Growth in supply will happend *only* when the prices are high enough that producing that product becomes more rational option for producer then other options. Under the curent pricing of chain and chainmail (just a conveniet example, PHB and DMG are full of simmilar nonsense) a smith has much greater motivation to forge chain then the mail. If the supply of chain thus outpaces the demand competition will drop the price untill labour investment is at least roughly equivalent to that of producing other products (in this case the mail). Prices in a handbook should be giving some sort of steady state equilibrium which they do not no matter what are the conditions on supply or demand. </p><p></p><p>Also against the theory of demand=low price goes the actual historcal example of nothing else but chainmail. Despite the fact that it was an item much coveted by all (despite absence of goblins real middle ages were very violent period) it steadily remained monetary equivalent of today's luxury family home, because supply in terms of many months work of skilled armourer was low. </p><p></p><p>Reason this bothers me is because as soon as PC's move a step beyond slaughtering monsters in dungeons and try to do something in the world arround them they are hit by economic nonsense that DM had to fix essentialy from the skratch.</p></blockquote><p></p>
[QUOTE="bramadan, post: 52772, member: 1064"] [b]high demand != low prices[/b] My intersat in economy is purely amateurish but even I know that the demand does *Not* generate downwards pressure on prices either in long or short term. If a labour/skill intensive product is in high demand and there is no technology that can expedite its production pressure will be to increase prices not decrease them. Growth in supply will happend *only* when the prices are high enough that producing that product becomes more rational option for producer then other options. Under the curent pricing of chain and chainmail (just a conveniet example, PHB and DMG are full of simmilar nonsense) a smith has much greater motivation to forge chain then the mail. If the supply of chain thus outpaces the demand competition will drop the price untill labour investment is at least roughly equivalent to that of producing other products (in this case the mail). Prices in a handbook should be giving some sort of steady state equilibrium which they do not no matter what are the conditions on supply or demand. Also against the theory of demand=low price goes the actual historcal example of nothing else but chainmail. Despite the fact that it was an item much coveted by all (despite absence of goblins real middle ages were very violent period) it steadily remained monetary equivalent of today's luxury family home, because supply in terms of many months work of skilled armourer was low. Reason this bothers me is because as soon as PC's move a step beyond slaughtering monsters in dungeons and try to do something in the world arround them they are hit by economic nonsense that DM had to fix essentialy from the skratch. [/QUOTE]
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