I am sure you are familiar with online auction and sales sites like Ebay or Etsy....

I am sure you are familiar with online auction and sales sites like Ebay or Etsy. How do they address the adverse selection problems?

Expert Solution

As per the definition of adverse selection it is a situation in which sellers have information that buyers do not have, or vice versa, about some aspect of product quality , so it a situation of asymmetric information . One party has more material knowledge than other party in the economic transaction . Auction and sales sites like Ebay are the sellers here who have more know product knowledge than any buyer . Firstly auctioning online helps the seller to know about the reservation price of a buyer which is a hidden information for the seller . Online auctioning brings together large number of buyers which initiates frequent bidding and more competition among buyer .

After sales services provided by such online sites , other facilities like product description and customer reviews provided on the site , customer service and proper receipt of warranty periods address thses adverse selection problems faced by buyers .

Rahul Sunny answered 2 years ago

eBay 1- Why has eBay succeeded as an online auction marketplace while so many others have...

eBay 1- Why has eBay succeeded as an online auction marketplace while so many others have failed? 2- Evaluate eBay's fee structure. is it optimal, or could it be improved? why? How? 3- Discuss Donahoe's vision for eBay. Is moving away from online auctions sustainable for the company?

The online auction company eBay is discussed at length in the chapter. Using the Internet, research...

The online auction company eBay is discussed at length in the chapter. Using the Internet, research eBay’s competitors. Select one such competitor and write one or two paragraphs on how this company distinguishes itself from eBay.

When are sellers from online auction sites required to pay income tax? Please provide and discuss...

When are sellers from online auction sites required to pay income tax? Please provide and discuss an example.

I am sure you have heard the saying that goes something like why fix what isn't...

I am sure you have heard the saying that goes something like why fix what isn't broken, but how will you know if it is broken. Policies and procedures are usually seldom reviewed once implemented which can prove to be disastrous. Explain why and how often a facility should review and update the security policy.

I am stuck on this problem and I am not sure what the solution is. In...

I am stuck on this problem and I am not sure what the solution is. In C Write item.h and item.c. In item.h, typedef a struct (of type t_item) which contains the following information: t_item: char name[MAX_ITEM_NAME_STRING]; char description[MAX_ITEM_DESCRIPTION_STRING]; Make sure that MAX_ITEM_NAME_STRING and MAX_ITEM_DESCRIPTION_STRING are defined with suitable sizes in your item.h. Typical values are, 25 and 80, respectively. Add the following interface definition to item.h: int item_load_items(t_item items[], int max_items, char *filename); Returns the number of objects loaded...

I am learning sailing on a 5m catamaran (Nacra 5). I am familiar with basic aerodynamics...

I am learning sailing on a 5m catamaran (Nacra 5). I am familiar with basic aerodynamics and the physics of the sail and keel. We learned that when sailing closed hauled, too tight a mainsail tends to bring the boat up to the wind. And that the opposite is true for the jib. For example, one may steer up to the wind to come about, using the mainsail alone, by trimming it tight. My question is why the trimmed mainsail...

I am working on this problem for the company AT & T and am not sure...

I am working on this problem for the company AT & T and am not sure how to start it. Draw a chart of the main inter-organizational linkage mechanisms (e.g., long -term contacts, strategic alliances, mergers) that your organization uses to manage its symbiotic resource interdependencies. Using resource dependence theory and transaction cost theory, discuss why the organization to manage its interdependencies in this way. Do you think the organization has selected the most appropriate linkage mechanisms? Why or why...

I am not sure how to approach this. You are managing a bake sale for a...

I am not sure how to approach this. You are managing a bake sale for a club at your school. It’s being held each weekend in the fall that the football team has a home game. This year, there will be five home games. The club sells cookies in packages of two dozen. The selling price per package is $8.65. The packaging material costs $.11 (11 cents) per package. You pay the regular kitchen staff a direct labor cost for...

I am calculating the expected cash flow for a project. However, I am not sure that...

I am calculating the expected cash flow for a project. However, I am not sure that I should use the net cash flow (after tax) or cash flows (before tax) to identify the payback period and the discounted payback period? Thank you

I just need 3 and 5. I am not sure what I am doing wrong. I...

I just need 3 and 5. I am not sure what I am doing wrong. I get different numbers every time. Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 Total North Store South Store East Store Sales $ 4,800,000 $ 960,000 $ 1,920,000 $ 1,920,000 Cost of goods sold 2,640,000...

Question