There are several HUGE flaws in your logic.
By using LCFS and Round Robin when selling items we can attempt to eliminate the unfair practice of undercutting other sellers to the extent that their items don’t sell and they lose their listing fee.
How many people “lose their listing fee” does not depend on how often people will be undercut, but on how many people are willing to buy the items for the listed price! The current system encourages undercutting, and more or less encourages prices to slowly sink and then stabilize around a level, where people listing items and people buying these listed items are in a good balance, thus more items will be sold, and less people will “lose their listing fee”.
Your system encourages sell prices to stay high, thus disencouraging potential buyers to buy these listed items, because they stay at a too expensive level for way too long. More people will pay their listings fees in vain.
Suppose we have a Current Sellers table of:
1000 Available 1g 50s 00c
where there is only 1 person selling this item. A new seller for 100 of the item would be given the incentive of using a LCFS algorithm to post their item at the price of 1g 50s 00c rather than 1g 49s 99c, as their item will be sold before the previous seller. Posting it at either price achieves the same thing, so will post it for the higher price. However, the use of round robin would help to reduce starvation by selling items from both sellers when a new buyer is found.
This actually contradicts itself.
The round robing thing means that the 100 items of the new guy will take longer to sell, because the other guys 1000 items are being mixed in between his. One of the other guys items will be sold now and then instead of the new guys items, so he has to wait longer until his stock is sold. He will instead list his items at 1g 49s 99c to sell them faster. This system encourages undercutting as well, because “posting it at either price” does not “achieve the same thing”.
It’s just reasonable to say that someone who is trying to sell and item whose price has been drastically decreased for a long duration will likely never sell that item. They would need to repay the listing fee to be able to sell it.
But undercutting is not the reason that the item doesn’t sell, the reason is that there’s not enough demand from people willing to buy the items at that price, so prices will naturally sink.
LCFS will just keep prices at a higher level, so you are even less likely to sell your stuff, because, additionally to the wall of items listed after yours, you now have a price wall blocking your item from being sold: because of the higher prices, buyers will have to pay much more gold to remove the wall of items listed after yours.
Your round robin system though encourages people to undercut to sell faster, as stated above. It won’t have much effect on the current system and it definitely will not counter undercutting.
