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Well, in my system, I could make the case that the player doesn't have the right to withdraw the object from the goblin market. Because of its influence, it has gained legal protections from such behaviors. (Bureaucratic red tape is good for something after all.) So basically, the player can play around up until the auction actually starts, but then they are stuck with the results. They could always buy the object back themselves if they want try again, but that's fair behavior, as the goblin market and storeowner still get their share.
The one thing that really worries me is game theory behavior. Such a strongly market controlled system would require more careful design and management of the equipment outflow. I think a broad auction system will magnify any imbalances in how much of each type of equipment there is suitable for each type of character. I'm not sure what the best way of balancing equipment is. It is something I'd like to be market controlled as well, but will that simply shift the problem elsewhere rather than dealing with it? At some point things will have to be managed by hand, maybe it would be best to do this while it's still easily quantifiable.
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