Analysis And Improvement Strategies Of Information Asymmetry In C2C E-Commerce On Taobao.com

This paper discusses the expression, characteristics, influence factors and others raising from the asymmetric information of online transactions between the buyers and seller on e-commerce site, C2C, taking Taobao as an example. The feasible recommendations or policies are proposed to promote the prosperous development for Taobao and other e-commerce platform.Based on the asymmetry theory and e-commerce, this thesis analyzes and summarizes systematically the market scale and existing problems of C2C e-commerce on Taobao site and expression, influence and the reasons of asymmetric information in the process of e-commerce on Taobao site. Usually the problems of information asymmetry mainly demonstrate that the information one party owns is more than the other, causing the adverse selection and moral hazard problems. And it is more prominent in C2C e-commerce on Taobao site that means the sellers have more private information than buyers, leading to the information asymmetry to bring up the mentioned problems.In the C2C e-commerce market trading, sellers have more private information on the understanding of its reputation and product quality, and it is usually one seller with many buyers. Therefore sellers have more. It is just this private information that leads to the information asymmetry bringing up the adverse selection and moral hazard problems, given that sellers cannot provide the complete information to buyers.Regarding to this asymmetric information, this paper discusses the status and characteristics. The specific problem in the trading process of Taobao covers:(1) reputation leads to information asymmetry; (2) the cost of payment; (3) search functionality of the product. The expression of information asymmetry in Taobao is:(1) asymmetric information of product quality, online store of the seller embodies asymmetric information. The impact of asymmetric information on C2C e-commerce on Taobao includes:(1) the impact on C2C e-commerce market; (2) the impact on consumers; (3) the impact on the seller. The causes include:(1) adverse selection arising from pre-information asymmetry; (2) moral hazard arising from post information asymmetry.Through the analysis of causes and effect of asymmetric information in the C2C e-commerce on Taobao site, this paper put forwards the strategies to solve the problems to reduce the asymmetric level of information, promoting the development of C2C e-commerce in a healthy way.