You're describing an auction principle. It's called merit-order. It is very efficient at creating a transparent market and finding the "natural" market price.

You're describing an auction principle. It's called merit-order. It is very efficient at creating a transparent market and finding the "natural" market price. The same price that a free and transparent market would converge to. The alternative are price caps. Which could be considered. But it's a choice between free and non-free markets. Blaming merit-order is shooting the messenger.