Reinventing the Bazzar

1) Choose a passage from the reading that you found particularly interesting.  Why was it interesting?
One passage mentioned about that the internet made bargaining easier for the buyers and the sellers by "improving the efficiency of the market mechanization." This meant that because more people were willing to buy more products, the more advantageous it became.
2) What does the author mean by transactions costs?  Give examples.
When the author mean transactions costs, he means that there's friction in the market with the buyer and the seller. Also it is the extra costs beyond the exchange costs and also it is a way to determine information, decision-making, and transportation costs.
3) Simple economic models often assume perfect information (everyone knows everything, everywhere.)  What effects arise from imperfect information?  Who gains and who loses when information is unevenly distributed?
"Bazzar merchants sometimes actively try to increase search costs by hiding price information" (pg.42) which means that they set the price high then bargain with the seller to the reasonable price where it is not too low or not too high, just right. They might charge tourists higher prices just for the sake of them paying that much since they do not know the country as much as natives do. The information would not flow easily if the information is unevenly distributed. Such advertisements can cause a downturn and so the buyers need to take "advantage of an cause markets to function at a low level of activity."