I react different ways, if its a market im not in much, I just drop to half or more after 1-3 of the cuts. Then I always sell and right away, avoiding having to play cat and mouse with somebody fighting so desperately for small profit items.

If its one of my market like Mythril Ingots, Cobalt ingots, or Darksteel nugs.. I flood the market and drown them out. Not a single player has been able to withstand this yet for any prolonged time, after a few hours to a day- they sell out and dont make more. Ill drive both of our profits down so low that they lose money and dont consider making anymore stacks of it.