The reason there is a bit of an issue in this game, is there is no fee to adjust your market price. It's free to undercut constantly. With a blind bid system, you can still undercut but are less likely to get undercut again beyond the first one. AKA if I undercut something that sells for 100, at 99. Chances are if someone else comes up to undercut, he also puts it at 99.
In games where you can see the price, the ones I've played atleast, there was always an AH fee to putting an object up. So if I put up my 99 item again, and someone comes along and puts it up for 98, I'm less likely to take it down and put it back up for 97 if I forfeit my AH deposit.