Oh, I see. You're saying that by selling the items from vendors, it kills the economy.
Well, in a way, yes. Players would no longer need to trade between each other to buy the items they want.
But in a way, it stabilizes the economy. Players will still be getting item drops from monsters that they can't use, and will want to sell them. But vendors only buy items for 1/4 price. As it is, the auction house is so easy to use (though not very accessible location-wise, but that's another topic), that players are willing to auction items for only 50% more than they'd get from vendors. So I'm sure they'd be willing to auction the items for say, 3/4 of the price, still allowing for a 1/4 discount compared to buying the item from a vendor.
Edit:
In fact, this method stabilized prices so effectively in Lineage, that even bots had little effect on prices.
Well, in a way, yes. Players would no longer need to trade between each other to buy the items they want.
But in a way, it stabilizes the economy. Players will still be getting item drops from monsters that they can't use, and will want to sell them. But vendors only buy items for 1/4 price. As it is, the auction house is so easy to use (though not very accessible location-wise, but that's another topic), that players are willing to auction items for only 50% more than they'd get from vendors. So I'm sure they'd be willing to auction the items for say, 3/4 of the price, still allowing for a 1/4 discount compared to buying the item from a vendor.
Edit:
In fact, this method stabilized prices so effectively in Lineage, that even bots had little effect on prices.
Less QQ more Pew Pew