that's a tempting strategy, but I see a few problems:
1. it assumes any potential buyer is going to see the auction within the week or whatever timeframe you specify. I've had auctions where they get relisted 3-4 times with no bids but then all of a sudden someone snatches it up. so starting at a penny and only running it for one week runs the risk that it ends super low (see #2) as opposed to it not selling one week, but then fetching a decent price later on.
2. it assumes that everything will get bid up to at least enough that it isn't a complete waste of time to deal with. for instance, if something gets only one bid and ends for literally one cent plus shipping then just the amount of time you spend shipping it is costing you more that what you are getting.
3. it takes away your ability to suggest a value. I find sometimes overpricing things but accepting offers yields a higher price. For instance, I've priced things at around $60 and had offers of $45 by people who think they are getting a good deal when similar items at auction only get bid up to $20-30.
I would say if you're dealing with something in relatively decent/high demand where you know the bids will exceed at least $100, then your strategy is a good one. For anything less than that, maybe not. I've stopped bothering with sub-$100 stuff for the most part since it's frankly easier and less time consuming to just donate those items.
If nicelynice is using Yahoo Japan, then he has the ability to cancel auctions and re-list them, I think. I've seen this happen many times on Y!J for listings that, presumably, didn't reach a high enough bid to satisfy the seller.