Re:Fake Amazon reviews 'being sold in bulk' online
by gwd on Tuesday February 16, 2021 @05:53AM
(#26152782)
> Akerlöf doesn't seem to apply here, there's no hidden information that comes out later.
The hidden information is how much quality control has gone into the manufacturing process. Seller A and seller B are both selling a cable for $10. Seller A bought thier cables for $8 because they spent a lot of time honing their manufacturing process and weeding out bad cables; the chance of getting a bad cable from them is 0.1%. Seller B bought their cables for $2, because they just went for the absolute cheapest option they could. The chance of getting a bad cable from them is basically 75%. You as someone buying it from Amazon can't tell the difference; so sellers like B make loads more money. Unscrupulous people hear about this and many more sellers like B show up. Sellers like A get frustrated and leave.
Re:Fake Amazon reviews 'being sold in bulk' online
by ballenf on Tuesday February 16, 2021 @06:10AM
(#26152862)
Seller B got their hands on the rejected cables from seller A. They were in fact paid to scrap them and instead are selling them after putting a sticker over a label.
The hidden information is how much quality control has gone into the manufacturing process. Seller A and seller B are both selling a cable for $10. Seller A bought thier cables for $8 because they spent a lot of time honing their manufacturing process and weeding out bad cables; the chance of getting a bad cable from them is 0.1%. Seller B bought their cables for $2, because they just went for the absolute cheapest option they could. The chance of getting a bad cable from them is basically 75%. You as someone buying it from Amazon can't tell the difference; so sellers like B make loads more money. Unscrupulous people hear about this and many more sellers like B show up. Sellers like A get frustrated and leave.