Undercutting.

[DenariusJay]

The problem is there is no regulations to whats a fair and reasonable price, like the real world. Real world markets are not a gigantic free for all like some think, its heavily regulated by government entities, with rules and stipulation, contracts, fair market values, anyone who knows anything about the housing market or stocks will know what I'm talking about. If someone "undercut" in the housing market, it would be ignored by an appraiser because its a motivated sale that doesn't reflect what a fair market value is - they are suppose to do this to keep the integrity of the housing market.

That doesn't happen in this game - there is no real market integrity, anyone can sell anything at any price. People can sell SavageAim4 for 1 gil and sell 100 of them at 1 gil if they wanted to crash the market. Realistically SE should add in minimum listing price requirements for items we know are valuable, ie can't list SavageAim4 for less then 80k, or something to that effect.

[Felessan]

That doesn't happen in this game - there is no real market integrity, anyone can sell anything at any price. People can sell SavageAim4 for 1 gil and sell 100 of them at 1 gil if they wanted to crash the market. Realistically SE should add in minimum listing price requirements for items we know are valuable, ie can't list SavageAim4 for less then 80k, or something to that effect.

They don't need to as scarcity limits the ability to undercut. There isn't a secret goldmine where you can mine SavageAim4 materia for pennies.
Regulations exist because they are needed to close gaps as real world is not perfect - you cannot have universal access to resources, you can be locked out of production due to transport/finance/whatever monopoly, companies have a running costs so they cannot easily stop/resume production (at least without heavy impact on job market) etc. In real world government not only care about quality of economics but also about job situation, quality of living (most of this in FF14 monopolized by SE) and other things that may worsen economy but make country healthier.
FF14 economy does not have all those problems so for it free market is rather good choice for perfectly matching demand with supply.

[Stihllodeing]

...snip... If someone "undercut" in the housing market, it would be ignored by an appraiser because its a motivated sale that doesn't reflect what a fair market value is - they are suppose to do this to keep the integrity of the housing market...snip...

That's not exactly true. If it's the only comparable available within the distance parameters given by the lender it will indeed be used in the appraisal and considered in the determining the value of the home in question. Appraisers are required to use comparable houses and homes that are within a reasonable vicinity to the home being appraised. The sale price of the home is indifferent to the goal of the prospective home buyer or home owner refinancing their home.

What you are talking about are homes that have either sold at auction or homes appraised with what is referred to a "subject to" values. The reason it is this way is because there is no real way, other than what homes in the vicinity have sold for, to determine what a home is worth. If homes in a certain area are selling for less than what someone believes is really what their home is worth, that's just tough I've ran into that before. It's a jagged pill to swallow at times, but it is the way it is regardless.

But ya, I've undercut my own retainers before in an attempt to encourage impulse buying. I never undercut by very much though. I try to preserve the integrity of the market as much as I can, aaaand I'm a little greedy I suppose