Loot Rules and Grouping

Some friends and I are firing WoW back up after being gone a long time

We’re talking about how to make our group and the subject of loot and loot sharing came up

We will likely just do five person dungeons and some PvP as a frame of reference

Is it an advantage or a disadvantage to have multiple played with the same type of weapons and armor?

For example a paladin and a warrior are in the same group and both use plate and two handed weapons, will they be competing over drops or will the pool of available stuff that drops actually end up potentially being more of both?

Is that the “personal loot” thing?

If I get a 2 handed that isn’t an upgrade for me could I give it to my friend?

Bottom line, is there a good reason to try to represent all types of armor in our five man group or does it really not matter?

With personal loot, there is not competing. The game decides if you get loot from a boss, and if you do, it can be anything from the boss’s loot table for your current loot spec. (You can change loot spec independent of your current spec from the drop down menu you get by right-clicking your unit frame.)

You can trade personal loot items to others, if the item qualifies. So, having the same gear type can be helpful in this respect. There are lots of rules (sometime-not-so-obvious) about what is eligible to trade. But here are some of the basics:

(1) The person needed to be a part of the kill that got the loot.
(2) You must already have an item for that slot that is the same ilvl or higher. (I believe this goes by highest usable BoP item every looted for the slot.)
(3) It can’t be from a bonus roll.

There are other exceptions and stuff you might run into, but that will cover most loot.

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Thank you!