1. Continuation is at work here because the letters overlap each other, one leading into the next to keep your eyes moving across the logo. I think closure is also present because of the slight reflection of the letters below them. Because you just see the start of the reflection, the image remains open and is not static. It engages the viewer's mind because you have to complete the image in your head.
2. Quirkiness, variety and possibilities
3. The colors in this logo are bold and varied. By using the four major colors (one for each letter) Ebay represents variety of choice and products. This is appropriate because you can sell anything from your ipod to your soul on Ebay, and the logo needs to represent that. The font of the letters is (I think) the same, but the stretch of the letters varies. This also represents variety and gives the logo a youthfu appearance with unlimited possibilities. Finally, the close kerning/overlap of the letters and colors gives the image energy and the lack of a base line makes it less formal.
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