In response to an advertisement in a social media which indicates that there are face masks...

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In response to an advertisement in a social media which indicates that there are face masks for sale. Orders will be shipped upon receipt of payment. Assume that you are disparately in need of face masks, and the seller needs the money. Further assume that both the payment and shipment take time. Thus, the seller will not know for sure that he is getting his money until after he has shipped the face masks. Likewise, you will not know for sure that you are getting the face masks until the money is sent. Will this transaction take place? Required: 1. Construct a game theory model using the above information. (10 marks) 2. State any further assumptions that you may have. (5 marks) 3. State and briefly explain the outcome. (5 marks) 4. Will the game change if the transaction is through an e-commerce platform such as Amazon, eBay or Taobao. (5 marks) In response to an advertisement in a social media which indicates that there are face masks for sale. Orders will be shipped upon receipt of payment. Assume that you are disparately in need of face masks, and the seller needs the money. Further assume that both the payment and shipment take time. Thus, the seller will not know for sure that he is getting his money until after he has shipped the face masks. Likewise, you will not know for sure that you are getting the face masks until the money is sent. Will this transaction take place? Required: 1. Construct a game theory model using the above information. (10 marks) 2. State any further assumptions that you may have. (5 marks) 3. State and briefly explain the outcome. (5 marks) 4. Will the game change if the transaction is through an e-commerce platform such as Amazon, eBay or Taobao. (5 marks)

Answer rating: 100% (QA)

Yes this transaction can take place Buy ers and sellers can often agree to a payment arrangement where money is sent before shipment and the seller agrees to ship the product even if the payment is no... View the full answer