How much price transparency is there on eBay? In terms of price information who has more: the buyers or the sellers? Will the side that has more information make more profit? Why?
Most of the price transparency is due to shipping and handling. Also some transparency may be in the price at which the customer and sellers think the item is worth. For example, it is difficult to place a price on antiques. Even if it is labeled with a price, some people might not think it’s worth it to buy an old item.
I believe that both buyers and sellers should have similiar ways to find out the price information. It's a matter of who makes more effort on researching the correct prices.However the side that makes more profit is the side that knows how to do business and bargain. For example, an item can be known to be worth $100. Both the buyer and seller can profit. If the seller gets the item from somewhere for less than $100 and sells it for more than he profits. The buyer can also profit because he can try to find the cheapest offer on eBay or even elsewhere online.
I found a website: http://www.usatoday.com/tech/techinvestor/2007-07-17-economists-study-ebay-buyers_N.htm. On this website it gives hints to buyers and sellers on eBay. It’s quite useful for buying items or selling items if you want to use eBay. But one interesting thing I learned from the articles I search is that eBay protects the buyer rather than the seller because they know that sellers will keep on coming and not leave.
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