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| Wednesday, March 12, 2008 The economics of Friends For Sale can be likened to real time economics. On one hand, there are those who strive to increase their own value. These people want to have a high value placed upon oneself, much like how some people in real life want to be known, or be popular, (or at least be seen as popular). Popular products, much like those who put up a provocative profile picture or are popular among their friends will command a higher price. It does not matter even if they are only sought after by a select few, say just two consumers, the bidding war, will ensure that the price of that person increases. In the same way, in real life, property seen as hot or in high demand would command higher prices. If, say you do not fall into the above category, some may be able to increase their own price. This is done by setting up deals or contracts, for example, buy me, and I will let you keep so and so. Or they might beg or ask for help/rescue, or demand that past loyalty and friendship rules demand that they buy them to bump up their price. This is a case, in real life where manipulation of prices and rules seem to increase the value of a commodity or property, that might not be that valuable in the first place, but hard work and/or manipulation can lead to increased prices. On the other hand, there are those who are in the game to earn money. These people may or may not care about their own worth, but they like to own property which cost a lot, or at least have a huge amount of cash. One method is the volume game. You buy and sell many pets, and as you earn a little profit each time you sell, you get some more money. The more times you succesfully buy and sell a pet, the more profit you get. Simple right ? The catch is to find friends/products that have a high demand so that there would be people interested to buy them from you. Like very close friends, protective boyfriends, stalkers and parents. Or you could create artificial demand by asking other people to buy them from you. Or you could even ask another friend to help create trading volume in this product, until a third party buys them from you, hoping that one of you will buy it from him at a profit, but instead you both stop, and there, you have earned profits and walked away successfully. The other method is the value game. Instead of spending time with the high volume low value products, the idea is to buy and sell high value products. As the margins increase, or at least the change in value is higher, each trade could probably net you a lot more in net cash. So you just need one trade in a popular product albeit expensive, and you could perhaps make more than buying and selling ten cheaper friends. Understand ? And of course, as there is not much of a need for liquidity in this game, make your money work for you. There is never a reason for you to keep cash when you could have bought a friend and wait for it to be sold off, unless you are saving money to buy a really expensive friend. In which case, I would still advise you to put the cash in a high movement friend, so that they will definitely be bought away from you, so this is a good way to earn some interest on your cash. This will be all today. |