I don't think it would be good for the auctions at all, it's already a race to the bottom where people price just above vendor so I bet everyone would just put items on the auction for even lower prices.
Prices would go lower because right now supply outruns demand. However, at some point it would cost less to purchase something at auction than it would to do it yourself, especially with time factored in. We're already close to that for grain. Squeezing a chicken swaps 2e for 2c. You can get bales of grain at auction for pretty much their energy cost. The producer does accumulate xp that the lot buyer forgoes. That's just one example.