The Blacraft Economy

[vh]

This is an attempt to judge the market values of the most important goods in the "Blacraft economy". Feel free to add any important items.
One problem with finding these values is picking an item to "peg" them to. The values of nearly every item is volatile or subjective.
I've created a currency, Blapiß (not to be confused with lapis) to peg everything to.

For convenience, the value of a diamond is set to 1.00, but as the economy changes (1.8 villager trades don't give unenchanted diamond armor anymore), the value can change. The value of Blapiß, however, does not.
Of course, if you feel that you have a burning desire for diamonds, feel free to set your valuation of the diamond to a value over 1.00 and vice versa

The items are sorted in order of important to the best of my ability, so feel free to omit anything you don't care for/don't want to fill out

https://docs.google.com/spreadsheets/d/11T4mqdw5-27d-i2K0-yJI3Emlv52UjxgM7VKisdvVfw/edit#gid=0

And the column of averages that someone put up.... that is not how a market works.

Code: [Select]

<osmotischen14>just for the record, you don't just take the value of everything and average them to get the market price
<osmotischen14>that's not how it works!
<Vitafcusafk>oh really
<osmotischen14>yeah
<osmotischen14>yeah really
<osmotischen14>suppose there were a bunch of billionairs bidding for a piece of art
<osmotischen14>then the 1 million peasants don't give a fuck about the art cause they're starving
<osmotischen14>that doesn't average in and cause the value of the painting to be $1
<Vitafcusafk>get rekt


[Darvince]

how does value work then

[vh]

what do you mean

[FiahOwl]

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[vh]

<osmotischen14>hmm
<osmotischen14>post it on the topic

[Darvince]

what is the value of an item that one person wants for $150000, three people want for $30000, and eight hundred people want for $2? is it simply $150000 or is it whatever it is worth to the second group of people or what?

[vh]

then something called arbitrage happens where a greedy capitalist (lets call him uncle sam) buys a bunch of that item for $2 and sells it to the people who will pay $150000. this goes on until the person who is selling for $2 raises his prices due to a shortage in the supply and the person who is buying for $150000 lowers his prices due to an excess surplus and it stops when the two prices meet. And that is the value.

"but what if the person wants to buy for $2 and doesn't want to sell?"

Uncle Sam spends $4 to produce the item and sells it to the person for $150000, making him rich. at this point in time, the market price is $150000. Sam keeps selling the item for more profit and the price gradually falls. eventually, it reaches some equilibrium and that is the new market price.

"but what if the item costs $200000 to produce?"

then the market price is between $200000 and $150000, precisely, it is the price at which the last trade occurred.