This AH system promotes undercutting. You want your item at the top of the list and the only way to do that is lowest price. I much prefer FFXI's AH (sue me) where you could see the price of the last 10 times it sold but you had no idea whether the other 1 up was twice the price, half, or exactly the same as the last sale.

This isn't competitive at all, because the win button is hanging right in front of you. Sell it for 1 gil less than the other guys!