(Solved):What are the ways that the eBay/Craigslist platform can reduce adverse selection or moral hazard…

 

Question

What are the ways that the eBay/Craigslist platform can reduce adverse selection or moral hazard problems? Does the star rating system that eBay uses count? There is buyer guarantee protection offered, what protection is that?

 

EXPERT ANSWER

For the eBay platform to minimize adverse selection, they should provide warranties to their products. The warranty will act as an assurance that the eBay company will give to the online traders. The warranty will

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