Avoids unnecessary (and excessive) undercutting battles, maybe? If someone is selling an item for 3k, and you're willing to sell for 2.8k, let the customer find out when they ask you and the other guy won't go to 2.799.
Funnily enough though, whenever I do this I find I get the most inquiries from people who are also selling the same item, so they can undercut anyway. I still prefer it though.
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