I think it comes down to supply & demand. When demand is high and supply is low sellers can ask for these prices as long as people are willing to pay it, its that simple. As supply balances out with the demands you'll see more competition around prices. As supply out weighs the demand...prices will drop to that last tier.

People with the resources that invest in that 1st tier when a new morph comes out want to make their investment back. They can charge that high dollar because they themselves put up the high dollar to reproduce that morph.Who sets the price for these morphs, buyers.

If someone wasn't willing to pay $25K, $100K or $200K for a morph, I don't think it would stay at that price for too long.

It's all a matter of what it's worth to someone, your house may be worth $200K today because someone was willing to pay $200K for it. If your neighbor sells his home similar to yours for $210K and the one across the street sells his home for $220K then all of a sudden your home is valued at $220K+ because some buyers felt it was worth $220K to live in that area.

If your neighbor asked $210K and had it on the market for 12-18 months and ended up selling for $180K and the guy across the street had his on the market for 6 months and sold his for $178K, your home just depreciated down to the $170K-$180K price line.

In SF realtors were knocking on doors of homes that weren't even for sale offering owners $100K-$200K-$300K over the value of the homes, why…demand Vs supply.