Good and bad deals in online auctions

http://www.webonomics.com/nytauction.htm

This March 1998 New York Times article describes the problem of fraud in online auctions. Answer the following questions after reading the article and looking at the web sites for ebay.com and onsale.com

Questions:

1. What is the difference between ebay's auctions and onsale's auctions in terms of the likelihood of fraud?

2. What methods (if any) do the two sites provide for protecting customers from fraud or other problems with their purchases?

3. Under what circumstances would you participate in an online auction, and what degree of fraud risk are you willing to accept?

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