-Required: rewrite the three paragraphs in the 3 images in your own style.. . .

Question

-Required: rewrite the three paragraphs in the 3 images in your own style..
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In order to alleviate the problem of asymmetric information and thus bidders' uncertainty of product quality, the sellers can provide more information of the auction item Li, Srinivasan & Sun (2009) studied the auctions of paintings and silver plates in eBay. The items were conjectured to possess elements of affiliation and asymmetric information induced problems because their values could be determined by future resale prices Seller's quality indicators were categorized as direct and indirect indicators. Direct quality indicators include postings of multiple pictures money-back guarantees and product oertification. Indirect quality indicators include minimum bid, hidden reserve price and the Buy-It-Now option. Seller's credibility indicators consist of seller rating points third-party payment option, and seller certifc ation.

Explanation / Answer

Asymmetric information is the common in the business of selling or buying process. When a person is selling a car for example has more information than a buyer. So, it is the sellers responsibility to provide proper information. Asymmetric information leads to the unhealthy situation in the business process.

In this case the sellers have all the information. The buyer will get the limited information.

It is actually a problem that the quality of the product is unknown as the information flow is not balanced or flow is not proper. In the process of auction or bidding the uncertainty of the product quality is always present with bidder. Seller can provide more information. The auction of painting and silver plates value in eBay websites having the future resale value.

Hence, as the asymmetric information is present with seller so it is very important to segregate the quality into direct and indirect form. The direct quality indicators are posting different picture from different angles, money back guarantee etc. Whereas the indirect quality indicators are sellers rating points, it's certificate and third party payment options.

According to the various researchs, the sellers credibility in the online auction is baised for reason in lie on data collection. When the data was collected is shows the homogeneous values. These values actually collected manually. Hence when the data shows negative value it means that the quality is symmetrical in nature whereas positive value says that the information is asymmetric in nature. Hence the creditability of sellers is increased with the negative value.

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