Azure Sky said:
It listed an item in the AH for 5$.
Now, for example we say that the Listing and sales fees are 1$ purely for easy maths. the cashout fee was not defined from memory, but logically it would be a percentage, lets call it 10% for easy maths.
RMTer lists his +1 sword of n00bslaying for 5$.
This means that his profit if it sold would be 3.60$ (listing is refunded on the sale, sale fee is 1$, and seeing as its an RMTer, he would cash out and have the cashout fee.)
I come along with the same item and want to sell it.
I can list it like this: No listing fee (Because I would have a few free listings /week, something RMTers would blow within minutes)
So I can list it without worrying it wont sell. Add the 1$ sale fee.
Then count the fact I would probably use the winnings on something like WoW time, so I don't cashout, no fee.
Letting me list the same item at 4.60 - well under the RMTer, and still make the same profit, 3.60$
Better yet, I only undercut him by 10 cents and make more than he will?
As for your argument of cheap, common items? That's what the gold AH is for.
First of all, you don't get a number of free listings per week, you get a number of free listings per account. http://www.g4tv.com/thefeed/blog/post/714985/diablo-3-auction-house-faq-and-information/
Secondly, you have never player a game with hardcore RMT have you?
Chinese gold farmers won't post it at $5 dollars, they'll post it at $3 because they have exploited 3rd world labour, bots, hacked accounts, etc
Finally, you realize that the GAH is just an extension of the RMAH right? Since gold and real money are exchangeable this means that these are just two sides of the same coin. The GAH prices WILL be affected by the RMAH.