The level on which both lines cross each other represents equilibrium. In other words, demand and supply is equal against each other and both parties (customer and supplier) are willing to trade at exactly the same price.
That's macroeconomics 101. The Transfer List in this game is not under perfect conditions which is what Wolph implied repeatedly and you wilfully decided to misrepresent. Taxes, constraints of any kind, time zone segmentation, make the Transfer List less and less a perfect market.
If you have positive answer on above then I do not understand why you support the idea of autobid.
Autobid was asked for before they erased FA and started Utopia, there was a massive deflation at the time and several times more transactions than there are now. Autobid is not something that is needed to
reduce or
increase prices, it's needed to achieve correct pricing, irrespective of whether it's higher or lower. Correct pricing is even more important today than it was 3 years ago before Utopia, because there are fewer transactions.
If you list a player at night 2 things can happen: 1) someone overbids massively to make sure he wins the auction (incidentally the seller should be fined for the overbid, assuming a fair price can be established); 2) the auction winner will underpay. In both cases the price is incorrect because of deficiencies in the market. With autobid you'd partially solve this as 1) would never happen and 2) would be less likely as people would autobid on players they are not willing to significantly overbid on in the hope nobody tops that overbid.
The supply line remains intact, as autobid is unlikely to have an effect whether you place the player on TL or not.
This is not entirely correct. People would list players on the transfer list at a lower starting point, if it meant a higher likelihood of achieving a fair price. In the current scenario you have people listing at very high prices hoping that someone will overpay by hitting the asking price. These people only want to sell at a high enough price, because they think that if they list the player normally he will not achieve their minimum target price.
The supply of players listed well above the TPE is irrelevant to the supply, so bringing some of those to more reasonable levels would actually increase the supply. Of course supply is strangled by the tax on sales more than anything, so shifting from a tax on sales to profits would help massively. Buying back players without penalty would also encourage lower starting price.
On the other hand, autobid will increase the curve of demand line as number of traders/buyers will increase as all of them can set their max price upfront without waiting till the end of an auction (little tricky, will discuss in 2nd point).
Demand would be the same, the number of people bidding per auction would be higher. As mentioned above, it would prevent most underpayments, but it would not necessarily increase the price because of the auction format. Your explanation of how the TL works is as a financial marked for liquid instruments, but that's not how the price is formed on the TL.
In practice, using autobid instead of using your maximum limit directly, would in fact also prevent most cases of people overpaying because they cannot be online for the auction. If such max limit is enough to win the auction, with autobid the winning user would not necessarily have to overpay. Again the price would reflect value more closely.
2) Imagine scenario when we have 2 users to bid on player X.
What is the correct price in your example? 100k or 61k? GMs will tell you it's 61k. If both were engaged in a bid war, it would end at 61k. If someone bid 100k the seller should be fined 39k for the overbidding by the buyer. Unfortunately, it is difficult for a GM to decide whether the player was worth 61k or 100k, especially if there are very few comparable examples due to poor liquidity.
Last edited by Lemonshine at 6/20/2017 8:03:29 PM