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How exactly do loot spawns work?

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My understanding is that certain loot has a certain percentage chance of spawning in certain locations. Is this correct? Does the game check to see how many players have a certain kind of item and adjust its spawn chances accordingly?

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this page has everything to do with % chance of item spawning and what area. bottom of page is the area spawn lists. i dont think its spawned on amount of players.

http://dayzwiki.com/wiki/index.php?title=Loot

Thanks. I thought that's how it worked, but then the amount of people complaining about "loot farming" started to make me wonder if there was more to it.

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