One Cent Or Lower?

A common question is: Should I undercut my opponent by a cent or should I charge as little as possible?

In World of Warcraft a very famous guy named greedy goblin had his new input on making gold. (I am not sure if greedy goblin invented this) He told his audience to charge as little as they possible could to scare away their opponents and completely own the market by themselves. To make this happen you would have to buy an extremely large amount of items so the seller would go down in price and you could make cheaper items than your competition.