Final answer:
A seller can reassure a possible buyer with imperfect information by being transparent, offering warranties, and being willing to provide demonstrations or answer questions. Agreeing on a price is difficult due to the lack of adequate knowledge for informed decision-making, and trust building is essential.
Step-by-step explanation:
When a seller of goods is faced with a possible buyer who has imperfect information, there are several ways to reassure the buyer and foster trust. Transparency is crucial; the seller can provide comprehensive and honest details about the product, including any certifications or third-party verifications that attest to the quality or authenticity of the goods. Additionally, offering a warranty or guarantee can alleviate concerns about potential defects or issues post-purchase. It's essential for sellers to be open and communicative, potentially offering product demonstrations, trials, or samples, and to be ready to answer any questions the buyer might have.
Why Agreeing on Price Can Be Difficult
Agreeing on a price when imperfect information exists is difficult because both parties lack adequate knowledge to make an informed decision; the seller might not be aware of the buyer's valuation of the good, while the buyer may not completely understand the quality or utility of the good. Overcoming this hurdle requires building trust and enhancing the flow of information between buyer and seller.