I've always wondered how the economy in this game has actually worked...

Mostly with accessories. The biggest example that I noticed of SK's economy being "weird" is when I got my crown of winter during the event and was clamoured at by everyone to buy it for 30k CE. I declined due to the fact that I wanted to keep it for sentimental reasons, and after the event was over people were still asking to buy it but for somewhere around 150k crowns. Aren't things that are retired supposed to go up in value? Another example is the pumpkin bomb bandolier- I understand everyone who played then got one but I'm still wondering why it's still got such garbage prices. That's a pretty lame example though considering that everyone got one.
Meanwhile the same set of lousy looking wings are being sold for over 3 mil and I'm doubting they're even that rare anymore
I've never really understood why the economy of the AH is all topsy turvy, I understand supply and demand probably has something to do with it but I've never fully grasped why things are randomly so pricey?
not really a complaint thread I was just wondering why rarity is the way it is in SK

That's what I've been thinking too but I've recieved multiple low ball requests all around the same price range. When I bound it to my chaos cowl with 3 UV's on it people have now been asking 2.5 mil for the cowl but that's still ridiculously low for what it's worth considering there is 3 UV's and a crown on it (a party popper too)

The only people not buying stuff on the AH are merchants.
So that they can sell it for a profit on the AH.

/i dont get it well erither, though here's probably the best explanations to your story
1: "was clamoured at by everyone to buy it for 30k CE. I declined due to the fact that I wanted to keep it for sentimental reasons, and after the event was over people were still asking to buy it but for somewhere around 150k crowns"
Because noobs who believe that they can get something extremely rare for anything less than 1 mil cr try because they realize how hard it is for a average F2Per to get 100k, they dont believe that it should be worth 1mil. IDK people are weird.
2: "Another example is the pumpkin bomb bandolier- I understand everyone who played then got one but I'm still wondering why it's still got such garbage prices. That's a pretty lame example though considering that everyone got one"
I personally have it. I personally dislike its look. I REALLY dislike its look on anything Wolver. Everyone got one, and those that were thrown out were dropeed on the AH for the new players that come in. In my own opinion, they aren't worth more than a Barrel Belly.
3: "Meanwhile the same set of lousy looking wings are being sold for over 3 mil and I'm doubting they're even that rare anymore"
I dont get it either. I assume every rich playing in SK has at least 3 sets of each kinds of wings, and those even more rich have ~ 2-3 different prismatic costumes, and ~7 other costumes or divine/ volcanic Not to mention at least some sort of Rose Regalia.
Why fashion has become the new standpoint of the game idk and idc.

The crowns are very valuable, to a degree that it hurts to buy one. People like shinies, but loss aversion is more potent than the possibility of getting something nice. For myself, I would really like a crown, but the going rate is equivalent to about 50.00 USD. Even though I had a little over 30,000ce at one point, purchasing a something that 'expensive' is really tough. I tend to think about what else I could do with the crystal energy. (Opportunity cost?)
I know that there are some players who have been investing in the market long enough to have amassed some serious buying power. They might be able to purchase 20,000ce items without flinching. Anyhow, the crown is rare and valuable, but beyond the reach of many of the players that still want one.
Crowns have been selling at 1.5 million or more on the auction house. People are trying to lowball you.