Why do people drop price more than 1 cent?

[僕の名前 (仮)]

On items that are sold fast anyway.

Instead they drop price by 10%, denying income for everyone (them, me and other people)

I'ts better to undercut by 1 cent on items that sell fast.

[Petrus Magnus]

People do that for several reasons. A simple reason is they want their items to sell fast (economically speaking they have a low time horizon). A more complicated reason is currency exchange rates. British pound and Euro users lowest denomination has a higher value then a few $US cents. Therefore they cannot list lower without going several cents below you regardless of their intentions (their currency will not let them). Like wise currencies that have denominations in the sub cent range like the Russian ruble or Japanese yen can appear to list a the same price as you but actual list at a fraction of a cent lower then you. This has cause some $US, British pound and Euro users to intentionally list at a value equal to a few cents lower then the market value to insure they are not being undercut. In addition Steam prices have artificial gaps in them do to the way Valve calculates commissions so the only way to undercut the market price when this happens is to drop the price several cents lower below the gap.

[LilyFinch]

@Petrus Magnus

Wow, the different exchange rates never occured to me. Makes a lot of sense.