Sellers on EBay with Good Reputations Are Able to Sell

question 129

Essay

Sellers on eBay with good reputations are able to sell their products at higher prices. Describe two ways the reviews that lead to these good reputations lessen moral hazard?

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Definitions:

Tariffs

Taxes or duties to be paid on a particular class of imports or exports, used by governments to regulate trade.

Nontariff Barrier

Trade restrictions that don't involve tariffs, such as quotas, embargoes, or regulations, affecting the import or export of goods.

Arbitration

A form of alternative dispute resolution where an impartial third party, the arbitrator, makes a decision in a conflict that is binding on the parties involved.

Forum Selection Clause

A provision in a contract that specifies which court or jurisdiction will resolve any disputes that arise under the contract.