It simple really, when a person puts an item up on the GAH or RMAH they have have 48hrs to sell that item. If it is not sold then it can't be put up on ah again. The player has to trade it salvage it or vendor it. Even if you trade it to a friend for them to post it or trade it to them and trade it back thinking some mechanic has reset, it won't work. Once an item passes those 48hrs the AH is off limits to it, both GAH and RMAH.
You like flipping items? well, you won't be for long.
If you manage to sell an item on the AH, the buyer gets a 48hrs window to sell it on the ah( it gets reset for the buyer). If the second buyer manages to sell it, this is where it gets interesting.
If the third buyer of that item wants to flip it, they are going to pay an additional %5 on top of the ah %15 cut. If this item keeps on getting flipped %5 will be added each time to a max of 80% interest for selling the item. The reason for this is to minimize that items shelf life on the AH. You like flipping well you will have to keep paying.
Of course people will increase prices of the items to offset the interest they pay when it gets sold but that's okay. Why? well if no one is willing to pay such a high price for an item then they can wait the 48hrs for the item to just be withdrawn from the ah (permanently) forcing the owner to barter for it. Or they can vendor or salvage it.
Giving the items a shelf life helps promote an active AH with always fresh items at reasonable prices. Because if they are too high no one will buy and you are left selling it the hard way. Of course top tier items will be the highest but no one will be able to over exaggerate their value.
What about people who choose not to buy top tier items for their value and let it expire so they can try to barter with the owner( if they can find the owner). Well didn't most people say that they didn't want an ah? well bartering is how its done without one.
Some may say blizz will never do this because they make a profit off the ah. Well how can you make a profit out of rmah when there are too many items with too high of prices that only a select few can purchase or are willing.
Like most of you say, this game was built around the AH, if the AH starts moving then everything else starts as well, price shifts, item availability, item rarity. the black smith and the jewel crafter.
So yes A lot people did not like the original solution but its purpose was to get some of the community brain storming on possible alternatives without impacting the D3 population too much and making them unhappy campers.
So here is my new suggestion. Instead of having the 48hrs to sell or your done I suggest a filtering system for the AH.
Here is what I mean. lets say 300 swords are put up. 100 blue, 100 rare and 100 legendary. Those items are put up at the sellers choice of prices. When the first one gets sold it goes into a pool. and any item that is sold that is similar to this item gets added to the pool. over the course of sales of this type of item the AH starts to average out a price. The average is calculated between the min price this type was sold at and the max price. So who ever puts a similar item on the ah will have this field to work with.
They will be giving the option to put it somewhere in the field at what its been selling at because this is the current rate. or people can choose to undercut the min price if they want a quick buck or if they want to flip it they can over over the max sale price of the item by a certain% of what the items current going rate is at. So this way the price of the item will shift according to consumer demand. thus preventing some people from greatly increasing the cost of an item because the system will not allow them to set it too high outside its current worth.
So I took the time to catch up on the comments and there were some with good counter arguments as to why this would be a bad idea and of course the obvious trolls and people with E-degrees and also apparently everyone is a economy expert that says no wrong.
Moving on. I know my solution isn't ideal and I am open to change and suggestion just like blizzard is( so I hope). It seems I may have to expand a bit more for some that find it hard to analyse my original post and feel that i am attacking flippers and the AH( in a way I am but they arn't my target), Moving on.
although I don't like comparing two separate games but in some cases to get a point across it is needed. As we all know the AH system is new to the Diablo series and it is not working as intended. The fact that itemization is random doesn't help either. So lets evolve the Original solution a bit. I see that attacking the AH and flippers problem was extending the reach too far but it is true that it is a problem. When items get put on the AH its everyone guesstimating there worth as well as copying the worth they see by other posts.
This is where I am going to insert "WoW" as an example. When someone posts an item on the wow auction house they take their expenses into consideration and develop a price to sell the item that isn't too expensive that someone won't farm the mats themselves and just tip a guy to make it. This is important because people can't flip an item beyond its worth because if they do the item won't sell because their is an alternative to getting that item which is cheaper.
This is what D3 is lacking, an alternative. I don't have any other option, The AH is the only option. So here is a new pitch. Lower the drop rating for monsters and even more for rares and elites. but increase the stats of the item drops by a good amount, But introduce a higher drop rating for craft recipes which have stats that compete with what someone may find on the AH. but makes these items BOUND to the character. So instead of me having to go to the AH I can just craft my gear instead. Now I don't want to take away from the main concept of the game which is the item grind. Hence why the rare/elite packs that are killed if they do drop an item it will be better than the craftable recipe it drops. also they may drop non bound versions of the craftable items but will cost more to make but will allow you to AH them. The mobs will also drop mats to craft the items. This way when a mob drops an actual item we know its going to be good instead of just being vendor trash.
With this solution I feel there will be more stability in the auction house. Because now the players have a competitive alternative which is craftable gear, and any item that does go on the AH will have a base value because of the alternative. Any item that has slightly better stats than that what can be crafted will its value compared to the crafted version and its value increased by its rarity.
By introducing the black smith as a serious competitor to the auction house it could help to improve things. ( I know blizzard has something in the forms with itemization in the works with their current patch, but who are you kidding theirs version to improvement vs ours is different.)