Discussion » Technology » What do u think about Moral Hazard of E-commerce

  • Liz
    Liz wrote:
    <p>What exactly is the "Moral Hazard"? Moral Hazard, that's when somebody takes your money and is not responsible for it.&nbsp;</p> <p>Well,since there's electronic delivery in online bank, costomers who buy things online are always under the risk of Moral Hazard. And for some C2C websites, sometimes sellers will at the risk of it! What do u think about moral Hazard of E-commerce? Feel free to write something. :) Thank you for your discussion.</p>
  • 叮噹叔叔 (令狐叮噹)

    。。。

    Hahahaha ... I started buying online in 1998/1999, a Western Digital hard disk from EggHead.com in US when I was living in Australia, when, coincidentally, I just got a new job and I was going to NYC for two weeks ... so I got them to send it to NYC, and I picked it up when I was there ...

    As far as "hazard" is concerned, I guess it comes down to "trust" ... it is like meeting an internet friend for the first time, and you never know if the photo is real or anything like that ... there is always certain degree of unknown ...

     

  • 叮噹叔叔 (令狐叮噹)

    。。。

    Hahahahaha ... as far as e-shopping is concerned, I guess I have been fairly lucky ... never been cheated once (touch wood) yet ...

    About your "should do something", one idea would be to get the sellers to pay some sort of "security deposit" at a bank or trust account, like they do with banks and insurance companies, and to make sense out of it, the amount has to be in the 5 or 6 digits, however, most sellers are just students or fresh out of school, so it is perhaps not realistic or reasonable ...

    What do you mean by "R u doing e-business or did that before"?

  • 叮噹叔叔 (令狐叮噹)

    ...

    Hahahahaha ... I did create a e-Com web site once for a client, if it counts ...

  • 申琪 Annie Shen

    moral hazard

    haha

     

  • 叮噹叔叔 (令狐叮噹)

    。。。

    Hahahaha ... it was both B2B and B2C, for a company that sells hardware components and spare parts ... and we had to "connect" the frontend to the backend finance and CRM ...

  • Minger
    Minger wrote:

    我不知道中文是不是存在“道德风险”,但是你提到的问题肯定不叫"moral hazard"。骗钱不是道德的问题。是犯罪。A "moral hazard" would be something like flirting with other girls when you have a wife (uncle DD might be guilty), because it puts one at risk of doing something immoral. I think the word you want is "risk".

    I only use reputable credit card companies when I buy online. If there is any problem with the product or it isn't delivered, I tell my credit card company not to pay the merchant. It is simple and I have never had a problem.

  • 叮噹叔叔 (令狐叮噹)

    ...

    Hahahaha ... Spire... I dont really know, because since then I had did not planned to go to US anytime sooner, so I did no pay any attention to online shops in US ...but if they both have "egg" in their names and sell hardward parts, then it would seem very likely ...

    Lizzie ... Spire made a sound point here that even in "real" (i.e. non eBiz) shopping, the risk runs pretty much the same:

    1. the buyer or shopper - recalling the recent cases of "lean meat substance" (瘦肉精) and milk powder and many other more in China, the buyer did not really have much guarantee, it was just out of good faith ...

    2. the seller - many times when we handed over our one-hundred yuan notes (I usually only have one or two in my wallet, ahhhh), the seller or assistance would rub it, touch it, scan it, until it does not look like a note ... but of course that is to protect their own interest ...

    So, when it comes down to it ... the word "faith" (or to a certain degree, "trust") is the only guarantee there it ...

    And going back to 莫明 ... yes, I always have to take a chance that the girl might in fact be a a prostitute or an alien life form or another fat old guy dressing up as a girl, otherwise, I think I am fine, hahaha ...

  • Minger
    Minger wrote:

    三文鱼, 我还是不明白这个风险和道德有什么关系…如果这类公司在国内,我估计它们腐败的可能性很高,但这还不是道德的问题。骗子就是骗子。…嗯,你说的支付宝就是一个没必要存在的代理。我要是在网上购买,我都会用国际银行。这样比较靠谱,它们也能做这个escrow服务。我最讨厌的东西就是代理(房产代理 :-p)。

  • Minger
    Minger wrote:

    Okay, after reading wikipedia I know what you mean.

    "Moral hazard occurs when a party insulated from risk behaves differently than it would behave if it were fully exposed to the risk.

    Moral hazard arises because an individual or institution does not take the full consequences and responsibilities of its actions, and therefore has a tendency to act less carefully than it otherwise would, leaving another party to hold some responsibility for the consequences of those actions. For example, a person with insurance against automobile theft may be less cautious about locking his or her car, because the negative consequences of vehicle theft are (partially) the responsibility of the insurance company.

    Economists explain moral hazard as a special case of information asymmetry, a situation in which one party in a transaction has more information than another. In particular, moral hazard may occur if a party that is insulated from risk has more information about its actions and intentions than the party paying for the negative consequences of the risk. More broadly, moral hazard occurs when the party with more information about its actions or intentions has a tendency or incentive to behave inappropriately from the perspective of the party with less information.

    Moral hazard also arises in a principal-agent problem, where one party, called an agent, acts on behalf of another party, called the principal. The agent usually has more information about his or her actions or intentions than the principal does, because the principal usually cannot completely monitor the agent. The agent may have an incentive to act inappropriately (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned...."

     When there is a third party independant consumer reporting system and a free media, this problem doesn't exist for e-business. I suppose the problem does exist whenever an agent is involved though (hence I hate agents). Of course, I live in a country where contracts have value, so this may skew my thinking a lot.

  • 随便叫兽
    随便叫兽 wrote:

    GodFather thinks nothing.

    In other news, the sun came up today.

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