Pricing

I am experiencing the question of price it to sell or price it to negotiate.  My line from a StarPower course is: "Wouldnt you rather turn down three offers than get no offer at all?"   Typically this works, but other agents are telling people to price the properties up in order to let the buyer feel as if they have won in negotiating.  However, when houses are going thirty days without showings, it seems under pricing is needed to get the traffic thru the door and the house sold. Some agents are going to far as to grossly over price the listing when it enters MLS and then have a drastic reduction to reality within 24 hours.  I consider this to be false advertising. Thoughts?