How do you react to being undercut?

[synaesthetic]

Free listing and re-pricing would work fine and be a really good thing...

If all currency sinks--repair costs, housing costs, teleportation costs (the big long term one)--would automatically adjust for the current value of gil.

But they don't.

So what does rampant undercutting do? Cause massive deflation and a mismatch in how much players believe gil is worth and how much the game claims it is worth. Square only needs to change the system slightly to stop this (and it will dissuade RMT activity as well, since they are responsible for crashing most of the markets with their gather-bots).

How can Square fix this? Really simple.

1) Charge a brokerage fee when listing the item instead of a single tax when the item sells. This way people will be wary about pricing items too low with the intention of crashing a market.
2) Refund the brokerage fee if the item does not sell, but is not pulled down by the player (when the listing expires). This prevents players from being punished because their item didn't sell.
3) Charge a new brokerage fee every time the player adjusts the price of an item, or takes it down and relists it. This stops undercutting wars--people aren't going to undercut multiple times per day because it'll cost them each time they do it. You get market price stability as a result.
4) Charge the sales tax as per usual, when/if the item sells. Just a currency sink, nothing to see here.

This is no different from what any other auction service in the real world (i.e. eBay) does. If you list your old iPhone on eBay but nobody buys it, eBay still charges you for the listing. Most MMO auction houses also do this--you pay a smaller fee to list the item, and a larger "cut" to the AH when your item sells.