First off I want to say I'm posting this here as well as in the Suggestions Forum because I want to ignite a spark that will begin with the players and end with the game-makers after something is changed. That being said it is imperative that players first, blizzard second, understand my message.
Free Market doesn't work. Plain and simple. You put an auction house up with a set of simple rules and mechanics that allow it to work, which allows players to post items for sale. And then the developers walk away. Hoping their creation works and everyone is happy. Unfortunately this is not the case. This system only works when everyone plays nice and doesn't price gouge, or try to monopolize the economy.