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In a previous post the subject was descuss about boting. Then "namelessbob" - Advanced Member touched the subject of AH to summarize he wrote:
"Bots outside of BGs in the open world are not so bad. People who say people selling large quantities of stuff on the AH are bots are not aware that one of the largest gold makers in WoW is playing the AH like the stock market in real life. Buy low sell high. I have had up over 500 epic gems on the AH at one time, but in no way does that mean I bot rofl. Also due to that reason alone is why they are coming up with the AH iphone app. They know the AH is a huge draw and a game in itself to some people."
Now as for me I also see the AH as a good way to make G playing WoW but I like to undercut the competition for example I will have lets say have 3 stacks of 20 in wool. My strategic would be to put them in a min bid at 0.40 with a buy out of 0.50 @ 5 a stack that gets me 2.2 after AH subtracts its fee. now I of course will sell all my stacks and make a easy 26.4 in G so I feel undercuting is better because with the AH mod it tells me that those who choose to sell high will not get the sale that day but I will. Remember this is a simple example now take it to better heights but keep it in the Green and you will make money most of the time.
That is my theory for AH and it works just fine to undercut sale in the green to make money.