Yes, if you assume identical preferences on both sides, then there will be no implied price movement from either side's dumping. There may be some slight movement due to differences in negotiating/trading ability, but you'd roughly expect a 1:1 transfer between the two sides and everyone ends up with twice as much of their preferred coin.
This is why I keep pointing out that not knowing, a priori, which side are the dumpers and which the dumpees was a keen insight.
In reality, there will be differences between the two sides and the uncertainty will be whether you're on the dumping side or not. Dumping will crash one of the coins eventually, though.
The other part that matters is that people, including no-coiners, have reservation prices for each coin. Those reservation prices inform how much of other resources, including their own time, they're willing to exchange for the coins. There will also be an asymmetry here that drives a wedge between the values of the two coins.
Those are the static considerations, but there are also dynamic considerations. When you talk about a person's decision to dump having no impact, it depends on when that choice takes place.
If the two sides had balanced preferences and then someone changes their mind, that's a demand/supply shift and it will shift the exchange rate. Then, seeing one side becoming more valuable than the other may change other people's minds about which side will win and further shift preferences.
Yes, if you assume identical preferences on both sides, then there will be no implied price movement from either side's dumping. There may be some slight movement due to differences in negotiating/trading ability, but you'd roughly expect a 1:1 transfer between the two sides and everyone ends up with twice as much of their preferred coin.
This is why I keep pointing out that not knowing, a priori, which side are the dumpers and which the dumpees was a keen insight.
In reality, there will be differences between the two sides and the uncertainty will be whether you're on the dumping side or not. Dumping will crash one of the coins eventually, though.
The other part that matters is that people, including no-coiners, have reservation prices for each coin. Those reservation prices inform how much of other resources, including their own time, they're willing to exchange for the coins. There will also be an asymmetry here that drives a wedge between the values of the two coins.
Those are the static considerations, but there are also dynamic considerations. When you talk about a person's decision to dump having no impact, it depends on when that choice takes place.
If the two sides had balanced preferences and then someone changes their mind, that's a demand/supply shift and it will shift the exchange rate. Then, seeing one side becoming more valuable than the other may change other people's minds about which side will win and further shift preferences.