Case Study

Case Study - Case Study # 5 Value is created by eBay due to...

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Case Study # 5 Value is created by eBay due to the site lowering transaction costs; which allows massive numbers of individuals to participate in an electronic market where trading is common place. If there were not sites like eBay the transaction costs would be higher and most auctions would take place in person at set locations within a given area. Potential contracting problem for eBay could arise through transactions between buyer and seller by a seller misleading a buyer through an improper description or misleading representation of the item being sold. Another issue would be if eBay were to default on their guarantees that they make to potential users. eBay works to address any possible contracting problems through multiple methods; fraud protection, their feedback forum, insurance, and an escrow service by which payers can place the money until items are received and approved. Due to the reputation that eBay has work hard to create and the cost that has been invested has lead to a site where customers can feel safe about their transactions. If eBay
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Case Study - Case Study # 5 Value is created by eBay due to...

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