Undercutting is definitely an issue. I see it on online games all the time. Something may have a high market value, then someone undercuts that, then the next person undercuts that, then the next... it's a nasty cycle until the product is virtually worthless.

It's sort of a mantra in the US, at least, that businesses NEED to compete with others and reducing prices is the way to do it. If Big Breeder has their snake for $500, Average Joe knows his name doesn't command the respect that Big Breeder has, so he has to sell for less. Maybe he puts it up for $450. Then Average Jane sees Joe selling for $450, and thinks - if the customer sees my price at $450 and Joe's price at $450, I have a theoretical 50% chance of a sale, but if they see my price at $425, they're more likely to come to me because it's cheaper!

Walmart mentality, I think. And the cycle continues.

I really do like his example about the fake snakes going up to manipulate that market. I bet that would affect things, especially if he claims to have constantly incoming stock. At the same time, I think if he didn't have the snakes there wouldn't be any pictures of said snakes, making the ad look less reputable. But then again, if all he has to state is "they're sold out, sorry," there would be no pictures for them anyway.