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In the network transaction, because the two sides of the transaction are different in time and space and the trading place is a virtual electronic market, information asymmetry is extremely common in C2C e-commerce; in sim[le terms, in the transaction process of the C2C e-commerce market, the seller owns all the information about the store and the goods sold, but because the seller pursues its own benefits to maximize the unwillingness to disclose non-positive information of itself or the goods, the information shared by both parties is unevenly distributed, which induces adverse selection and moral hazard problems. In order to solve these problems and protect the healthy development of the C2C e-commerce market in China, this paper taking Taobao as the representative model of C2C e-commerce. Firstly, Taobao.com is taken as an example to analyze the performance, characteristics and influencing factors of information asymmetry between buyers and sellers in C2C e-commerce website. Secondly, a game analysis is carried out for the strategic choices of buyers and sellers under incomplete information. Finally, it puts forward practical policies or suggestions for the analysis results, which helps to reduce the degree of information asymmetry in C2C e-commerce, so that Taobao and other C2C e-commerce platforms can achieve better development.

Research on Information Asymmetry in C2C E-Commerce: Based on the Case of Alibaba