Why do people insist on killing prices?

Its how a market stabilizes.

There is no set price but what the person wants in return.

Your price may be too high, theirs may be too low. They even out in the end.

They might ask why do people try to rip others off by pricing so high? (not saying you were, just speaking in general).

It is all subjective.

As someone who makes credits selling augments and augment kits, I have to agree with DarthTHC here. It may be that the market is different on the server MarmicMocius plays on, but Darth's price breakdown mirrors my own server prices..

I could write a paper on it (business major), but to keep it short a simulated economy is one where the monetary unit has no real value. A credit does not represent an actual resource in the game. There's no limit to the number of credits that are generated, nor is there any governing factors that determine a credit's worth. Similarly, the cost of items in the game does not reflect the worth of the basic monetary unit; a vendor item costs the same regardless of the economic state of the server.

A sign that a game boasts a simulated economy is that it requires one or more money sinks. A true economy doesn't need such systems, as it is self-balancing in some way.

..... If everyone starts selling for less than their cost to produce, and consistently, then its a broken market and the sellers are dumb.

My cost estimates are based upon the average cost it will run someone to complete crew missions in order to gather all the basic materials. The only real expense here is the grade 6 slicing materials. Drop rates as they are currently, the approximate average cost to gather 1 advanced neural augmentor is right around 10,000 credits. If you have a companion with a slicing crit bonus, this may go down a little. The other materials are readily available and do not have a significant impact on the overall investment necessary to make the desired augment.

What I have not bothered to factor in to my estimate of material costs for making an augment, is the time it takes to gather the materials/run crew missions, nor the process of learning the advanced schematics. I've chosen not to include these items because ultimately, the additional investment here is fairly minimal. ie, crew missions are most normally run while other actives are being done, or while logged out all together.

As a crafter, if you choose to purchase your crafting materials from the GTN then you are also accepting the additional financial burden of increased production costs. Understandably these costs will be forward to the people whom you're selling to. At the same time, you have to concede that you cannot be as competitive in price of your goods vs a crafter who may have chosen to invest the time to gather less expensive materials. Crafters with lower material costs can maintain a high profit margin, while still being able to undercut the price of their competitors.

So are not all MMO's simulated economies as they are simulations in their nature?

Economically serious undercutting is not how a market stabilises, it's how it eventually collapses.