An economist by trade, I love some of the economic aspects of MMOs.
A question for the Devs (or maybe the more knowledgeable forum goers)
Do you track inflation in game, and across servers?
This could easily be done, by tracking the change in AH purchase price for a basket of goods. Personally I would use only stuff that is bought via bid as opposed to buy out (to eliminate outliers) but I think either would work. This is assuming that there is a way to see finalized transactions in the AH.
This brings us to my second question.
I have never seen it done in any MMO, but can't figure out why. Index NPC prices to the monthly inflation changes. This would counter act many of the larger swings in inflation that we see. If the price of a basket of goods in the AH goes up by 5% from the first of March to the first of April, then the cost off scrolls and pots would go up by 5% as well.
Of course the price you could vendor trash for would go up 5%, but since the price you can sell something at is less then 100% but the price you buy at is more then 100%, I think this would in net take some plat out of the game, on a somewhat self regulating basis.
This would not have a negative effect on new players, but actually help to create a level playing field across time for new players.
Thoughts?