[quote=FormerSanDiegan]I think there is a fundamental flaw in here, and that is the assumption that more efficient means lower prices. A more efficient market would simply respond more immediately to supply and demand. Prices may increase or decrease when this happens.
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Agree 100%.
Is there any evidence to suggest that prices are higher or lower for any goods due to the existence of ebay ? The market is more active, but there is no real price pressure in either direction.
Wonder if econ prof knows of any theories about whether or not the sales process has a positive or negative effect on prices. My intuition says no effect at all.
