I was questing in Loch Modan today and of course pickpocketing every humanoid mob i encountered when i got my first real "treasure", a Fisherman's Lucky Hat, required level 15 to wear and gave a +5 to the fishing tradeskill. My Rogue doesn't do fishing so i figured i'd auction it off on the trade channel. I started by finding out the vendor value by visiting the nearest town and talking to a vendor, sale value: 2 Silver 66 Copper.
3 Silver seemed fair to start the bidding at, i figured i'd get at least 4 Silver.

The SECOND I sent the trade notice: "WTS [Fisherman's Lucky Hat] starting at 3s (vendor price +34c)" (in game you can click on the item in brackets and get all it's info), the bidding took off. It started at 10s and quickly rose to 30s and on and on... the final selling price 75 Silver. To be honest, i thought i was being scammed... I didn't know these people and had heard horror stories of one person outbidding another just to not buy the item. That wasn't the case, the person met me at the local Inn and paid their full 75 Silver (more money than my character had ever held on to).

This was a very positive experience for me and has given me a glimpse of how people get caught up in online commodities.

As for why the had was worth so much to these people... fishing is apparently a hard skill to raise and any bonus is wanted.

Plus, the fishing hat just cool looking, its got a feather!

it has a feather!!!! DAMN i woulda kept it til i got to level 15

Yeah, the real reason is hat's are hard to come by, and the fishing hat is really neato looking. I would have paid you a gold piece for it. :)