"Online shopping creates incentives for sellers to have more private labels," Professor Lynch said, "more exclusives and more branded variance, in which a manufacturer makes slightly different products with slightly different model numbers, but the differences are enough that consumers can't readily tell that they are essentially the same".
Amazon said that it intends to eliminate incentives for sellers to buy fake reviews for their products.
"Our goal is to eliminate the incentives for sellers to engage in review abuse and shut down this ecosystem around fraudulent reviews in exchange for compensation.
Ebay is debuting a new fee structure and incentives for sellers today in an effort to remain the most competitive commerce platform next to e-commerce marketplace Amazon.
"Our goal is to eliminate the incentives for sellers to engage in review abuse and shut down this ecosystem around fraudulent reviews in exchange for compensation," an Amazon spokesperson said.
This will provide an additional incentive for seller financing, since they will receive an income from the business.
It's a strong incentive for sellers to strive for greatness and grow their eBay business," she said.
The other incentive for sellers is asking them what they want to make from their products and does its best to guarantee that.
[Akerlof considered the example of the used car market and said there was a tendency for sellers of lemons to crowd out sellers of superior cars since buyers tended to assume all used cars are lemons.] I said there is a clear incentive for sellers of high-quality products to distinguish themselves, to signal the fact.
The incentive for the seller to opt for a short sale, Mr. Klein said, is above all the "credit ramifications" and "embarrassment" of a foreclosure.
