Existing auction sites, such as eBay, are inherently more valuable to customers than new auction sites.This basic economic fact is called a(n) _____.
A) deadlock effect
B) lock-in effect
C) smoke-and-mirrors effect
D) anti-pattern effect

Question

Quizplus · Accepted Answer

The lock-in effect refers to the economic principle that customers are more likely to continue using an existing product or service rather than switch to a new one, due to factors such as familiarity, trust, and network effects. This means that established auction sites like eBay are inherently more valuable to customers because they have a large user base, established reputation, and existing buying/selling processes that users are familiar with. This makes it difficult for new auction sites to attract users and compete with established players.

Existing Auction Sites, Such as EBay, Are Inherently More Valuable