The thing is, everything in this game is free and can be paid for with just "time". So if I farm all my mats for free using my time instead of buying them to make something, well then I can sell a 100k item for 1g and still make profit because I can value my time however I want to. It would still be more efficient to just undercut to 90k though.

The other complaint I see a lot is "people undercut because they are impatient". That argument is hypocritical in that if you were patient yourself, you would not have an issue waiting for those lower priced versions of said item to sell before yours does.

Oh wait, there's too many and people keep placing more of said item for less than mine! This is because the supply outstrips demand driving the prices down. If the demand were there, you would have no problem selling your higher priced item in time since eventually it will be the best deal. #economics