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Ebay - Contracting Issues

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EBay claims that it has only a small problem with fraud and misuse of the system. Does this imply that it is overinvesting in addressing potential contracting problems? Underinvesting? Explain. See attached file for full problem description.

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This doesn't mean either. They are not underinvesting since anything with so many buyers and sellers is bound to have some contractual issues involved. However, it doesn't mean they are overinvesting since the implementations they have in ...

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