Asymmetricity of information

The internet is truly a game changing disruption. I've noticed this again recently as I've shifted even more of my shopping online. It's actually quite logical: if you're buying more or less standardized products, the main differentiator between sellers is price. Right now I'm looking for sunglasses. I've narrowed my search down to one pair that I'm fairly interested in, and there is only one place in Finland selling that specific brand of sunglasses. I haven't been there yet, but I'm imagining that they are most likely charging a premium. Fortunately, however, I've been doing my homework and calculated the price that I would have to pay if I ordered them from abroad (including shipping and handling, taxes, and customs fees). Another dimension to this is the currency market, which gives me an additional discount to offset the fees with. So now, thanks to the available information related to the product's price as well as an efficient method of transporting goods globally, I'm going to be in a lot better position to negotiate with the local merchant about the price of the pair of sunglasses that he is selling.

The interesting thing about this is, however, that it's precisely in the asymmetric distribution of information where the merchants make their profits from. Used car merchants used to be in the brilliant position to basically lie and cheat the customer, since the customer was seldom able to value the car as well as the merchant could. Now with the rise of the internet and an access to global used car markets, the buyer can calculate some different scenarios about what it would cost to obtain the car from some other dealer. So in a sense the customer is now able to value the car being sold in a lot more precise and better way. This has sent the used car dealers scrambling for the hills. One Finnish dealer was actually saying in a newspaper that the internet should be destroyed, because it's killing business. That may be, but I for one see the positive aspects in this: business shouldn't necessarily be based on lying and cheating the customer but on creating tangible value add for the customer. If you're not creating value, the globalization of markets will soon drive you out of business. And that's how it should be...