As I stated, It deters RELISTING not INITIAL UNDERCUTTING.

People will undercut you regardless on the first listing. Meaning the price will continually be undercut until demand eats up the supply. Meaning you can still see 50k to 10k in a matter of hours. I see it all the time. Somebody whose initial undercut is by 50% or more. Its not even a re-listed item. Unless you can stop the initial undercutting, it makes no difference.

I'm sure those who have huge commodities would be more then willing to agree with you on having initial listing fees. Why? Cause you now give them the power to kick people out of their markets.