Funny how the OP is saying this is an SE problem and not a problem with people. Thing is I undercut because I want my stuff to sell faster than the other listed items. I also factor in that people are gonna list items after me so I pick a price that I am happy at letting the item be sold for.

In FFXI you couldn't see what the prices for items were set at but could see what they sold for just like you can in ARR. These are "markets" and not an Auction house meaning when you go to a market you see the prices for items before you buy. Markets and auctions houses are two totally different types of business. To me, the market place is working as it should and people just hate people selling the exact same thing for cheaper.