But longer on the market is more work for the agent, while the small percentage increase in a higher price doesn't enhance their commission by nearly as much as it does the homeowner's, especially considering there is frequently a substantial mortgage on the house (meaning, the homeowner gets to collect the "bank's share" of any additional sale price)
but what will your realtor recommend? "list it at a low price to generate interest and start a bidding war", pretty much the opposite of what you should do.
In the grand scheme of things, a commission for making a large, complex selling process go smoothly is not a ridiculous notion, but when your agent is participating in plucking your feathers it's pretty annoying.