Final answer:
Agents and brokers add value to marketing transactions by connecting buyers and sellers and assisting with negotiations, especially in situations where information is imperfect.
Step-by-step explanation:
Agents and brokers add value in a marketing transaction by bringing buyers and sellers together and by helping negotiate agreements. They play an important role in markets by facilitating economic transactions, particularly in situations of imperfect information, where either party may lack 100% certainty about the qualities of the goods or services involved. By representing and advocating for their clients, agents ensure that both buyers and sellers can find mutually beneficial deals even when facing information asymmetry, which occurs when one party has more information than the other.
In private markets like the cell phone industry, agents and brokers bridge the gap between supply and demand, aiding in determining the equilibrium price and ensuring the market functions efficiently. Their expertise and networks enable transactions that might not otherwise occur, enhancing the overall functionality of the market.