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Unit 3 Micro: How eBaY boosts World Trade

Saturday, June 08, 2013
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For international transactions conducted online through eBay, the distance between buyers and sellers is far less important than for
offline trade. That is the central finding of research by Marcelo Olarreaga and colleagues, to be presented at the TIGER Forum 2013.

Their study shows that eBay reduces ‘information frictions’ and establishes trust between market participants that would not otherwise
have traded. What’s more, the gains from the adoption of eBay are largest in those parts of the world where they are most needed – in
remote countries with bad institutions that make it difficult for sellers to create a good reputation.

This suggests that e-commerce can become a development tool by helping remote sellers from unstable countries integrate into world markets. Export promotion agencies in these countries should probably redirect part of their effort towards connecting producers to online markets.


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AS & A2 Economics Revision Workshops

AS & A2 Economics - Intensive Exam Coaching & Revision Workshops: Book Now!

Stratford | Fulham | Bristol | Birmingham | Gateshead | Leeds | Manchester

Dates and Locations

AS & A2 Economics - Macroeconomics: National & International Economy (Unit 2),  Global/International Economy (Unit 4)

  • Tuesday 25 March 2014 - London (Stratford City)
  • Wednesday 26 March 2014 - London (Fulham Broadway)
  • Thursday 27 March 2014 - Bristol (Cribbs Causeway)
  • Friday 28 March 2014 - Birmingham (Star City)
  • Tuesday 1 April 2014 - Gateshead (Metro Centre)
  • Wednesday 2 April 2014 - Leeds (The Light)
  • Thursday 3 April 2014 - Manchester (Salford Quays)

Post-Easter (AS Economics Units 1&2 Combined;  Global/International Economy (Unit 4))

  • Monday 28 April 2014 - London (Stratford City)
  • Tuesday 29 April 2014 - London (Fulham Broadway)
  • Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
  • Thursday 1 May 2014 - Birmingham (Star City)
  • Friday 2 May 2014 - Manchester (Salford Quays)

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