Personally. I always undercut, in fact its is in my advertisement on the market.
Here's my reasons
- It's not real money, so I dont care if I dont turn a profit .
2.Most of the time items I sell are drops , so even if I sold it for 1k, I make money.
3.I like to give the poor a chance. I have sold "valuable " items for a few ks. In reality market players most likely snatched it up and resold it .
4.Depending on the market if I see sellers gouging players over rare items I will buy up and resell slowly at lower prices to get it back on track (I have not done it on PSO...yet)
Those are my reasons. Again pixelated money doesn't mean much to me, so clearing my inventory for pennies, or correcting price gouging at a loss of my pp/gold/mesta is just how I play the game.