Those low prices on the market board...

[MomomiMomi]

If you can tank prices that hard because some one undercut for 1 Gil without massively hurting your profit, you could have already set your price that low in the first place.

I suppose that's what we should do, then, right? Let's just list the items at rock bottom prices from the start.

Also, no, it's not the most respectful way to list your item. That's absurd. You have multiple other options, including listing at the same price and listing at a higher price.