Bah. This is the nature of capitalism. Undercutting happens. As long as there is only ONE market to buy and sell your goods you are at the mercy of others selling in that same market.

The only alternatives would be to (revert to 1.0) and have multiple, separate markets (ugh) or the afore mentioned auction system.

No upvote here. The market regulates it's self appropriately. There will be undercuts, but there will also be gouges. It all balances out in the end.