Going to be real with you here. I don't care about gil because it's at a point where it's almost worthless to me, and I don't even have that much.
When I'm selling items, it's simply because they are worth selling for gil instead of giving them to a vendor, and I want them gone as fast as possible. I always gain a profit because the items cost me nothing. However, I'm also petty, so when I put up an item for 5,000,000 gil, and someone drops their items price to 4,999,999 gil - I'm more then happy to drop mine to half price to kindly tell them to get lost.
Not everyone is aiming to get rich. There's players who just want to make a bit of gil, and aren't interested in waiting too long for it.
Then there's the players who craft a lot. Since marketboard listings are limited to 20 per retainer, they'll sometimes prefer for items to be sold at a faster rate. Lowering the price is one way to speed things up.
When you move through hundreds or thousands of items a day, that extra couple K (if that) you could possibly maybe make if it sells fast is less good than being sure it's going to sell fast.
I've had to stop AH'ing things that go for less than whatever my days threshold is, because it's more profitable to just vendor them.
I vendored 30 corsages the other day (silly glowy mainhands) because they sell 1 or 2 a month for 10k. Not worth retainer space, ever.
The things that upset me about the AH generally come down to it being godawful. I'll never be satisfied until we get GW2's auction house system (or an upgrade to that) in every game though.
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