Buyout Definition
Economics forum
Posted on Jan. 16, 2016, 9:51 p.m. by Unforgivn_II
Noun - An act or instance of buying out, especially of buying all or a controlling percentage of the shares in a company.
Assuming that the "company" is all copies of a card (lets say only 100 Gray Ogres were printed), and each "share" is a single copy of Gray Ogre, a single person or entity would have to buy 51 copies of all Gray Ogres to guarantee a controlling percentage.
What we've been experiencing recently have not been buyouts, simply many people buying cards because of increased demand, as well as some supply being made untouchable by savvy stores taking their copies off the market for a time to avoid being duped.
A buyout is sinister, a price spike is natural. Price spikes typically represent a natural (albeit abrupt) increase in demand, where as a buyout represents an "artificial" increase in demand, in that the demand is only temporary and by one party. Stranglehold was a buyout (I actually know the guy who did it).
Just trying to get some knowledge in here because I keep seeing people use the terms synonymously. I do it out of love y'all. Go educate the world
Epochalyptik says... #4
Now if only we could undo the entirety of the armchair economist mentality that says all cards must always drop at rotation and so on.
January 16, 2016 10:49 p.m.
Although I agree with you, that doesn't mean there hasn't been an increase in the number of actual buyouts in the past while.
January 16, 2016 10:50 p.m.
Unforgivn_II says... #7
@TheDevicer - Very true. Some of these are actually buyouts. But a lot of these spikes make sense. And when it makes sense, its not often a buyout
January 16, 2016 10:56 p.m.
I believe that occams razor would explain that a buyout is fat more likely than many independent people all making the same arbitrary decision at exactly the same time.
And unless you can define what the natural conditions for a price spike are I remain unconvinced. Not that it can't happen, of course it can, but that's it likely.
There are multiple cards that have risen recently which very much surprise me because they're not even played. Gaddock Teeg beibg one. Given this it has to make you question whether it is the volition of many independent people or just a few larger entities.
So like unless you can prove exactly WHY a great number of people have all decided to buy an virtually unplayable card at the same time then you should probably accept the hypothesis that involves the fewest number of assumptions - buyout.
I totally understand what you're saying but it's still suspect.
January 17, 2016 5:25 a.m.
Lastdaysgunslinger says... #9
This term buyout can mean several things. And yes your definition is correct but when some say this they may also just mean sold out.It would be awesome if our forums would stop trying to be college classes and just talk about the game.
January 17, 2016 6:29 a.m.
Epochalyptik says... #10
Talking about the game requires people to understand and appropriately describe what's happening, especially when it comes to rules and economics (the two places I see corrections being made most often).
If armchair economists are going to panic at every price spike and claim a buyout without understanding that speculations and calculated market buyouts are different concepts, then the quality of our discussions and our ability to appropriately discuss are degraded.
January 17, 2016 8:33 a.m.
Lastdaysgunslinger says... #11
Epochalyptik I can agree with that. I guess I just meant that alot of people are complaining about people using a term appropriately but they may have just misinterpreted what an OP or commenter had typed. Everywhere you go slang has different meanings and we are not all the same so Im just proposing giving people a break.
fluffybunnypants says... #2
Thank you for re-iterating this point. I had given up trying to explain the difference.
January 16, 2016 10:01 p.m.