How does eBay create value? What potential contracting problems exist on eBay? How does eBay address these problems? (Referring to
Please answer all the questions to the best of your abilities. Please include references at the end.
Q1. How does eBay create value?
Q2. What potential contracting problems exist on eBay?
Q3. How does eBay address these problems? (Referring to the answer In Q2)
Q4. What are the contracting costs at eBay?
Q5. eBay claims that it has only a small problem with fraud and misuse of the system. Does this imply that it is overinvesting in addressing potential contracting problems? Underinvesting? Explain.
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