Advese selection problem on the online auction market

The problem of adverse selection is examined in the article. The author studies negative consequences of the online market system development on foreign and Russian examples. When the good is bought on the online market, the buyer has no case to evaluate the quality of buying good. This allows seller to get an advantage out of the bargain. In this case a lot of low-quality goods and counterfeit appears on the online auction market, especially on the lux segment. Similar situation is gathering pace on Russian market. Examining Russian position on the online market, the author suggests possible methods to eliminate adverse consequences in online trading system and conducts the analyses of their effectiveness