merchant greed is a special merchant feature that existed since early days of EQ.
As you know merchant bases his buy/sell prices of your CHA and your faction.
Merchant Greed feature can make additional adjustments to that merchant buy/sell ratio. This is how merchants outside of big city rip you off (buy your items for less and sell you items for more, than the merchants in the city do, while being on same faction) Classical example is Tubal Weaver at Qeynos Gates.
This feature has been implemented a while ago on P99
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