Submit this assignment according to the instructions provided in the module. Chapter 10: Ebay (Case Introduction) The eBay case takes an interesting look at auction markets and contracting. When you...

Submit this assignment according to the instructions provided in the module. Chapter 10: Ebay (Case Introduction) The eBay case takes an interesting look at auction markets and contracting. When you think about this case think about it from eBay’s perspective. What is eBay’s value proposition? To me, eBay has created a market to exchange goods and their value proposition is that people can feel comfortable exchanging those goods for monetary payouts as they transact through eBay. In Brickley, Smith, and Zimmerman (2016) the authors discuss reputational concerns and from my perspective, I feel that eBay needs to focus in on the following three points, in regards to contracting costs, to maintain its market position: (a) make sure that the benefits of cheating are small, (b) have a system that has a high probability to detect cheating, and (c) impose significant penalties if someone is cheating. In general, this case is about creating trust through contracting; therefore, you will want to write a little bit about asymmetric information and using contracts to avoid misrepresentations.
Jul 03, 2022
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