Tim Harford has a discussion in the Undercover Economist explaining why used car markets are so unreliable. The secret is that markets cannot exist without trust. Ebay has done everything it can to build up institutional trust mechanisms, but it apparently cannot keep ahead of the pervasive crookedness of klepto-cultures. Nigeria seems to be a hothouse for scams.
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Tim Harford has a discussion in the Undercover Economist explaining why used car markets are so unreliable. The secret is that markets cannot exist without trust. Ebay has done everything it can to build up institutional trust mechanisms, but it apparently cannot keep ahead of the pervasive crookedness of klepto-cultures. Nigeria seems to be a hothouse for scams.
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