Question

Interactions between buyers and sellers are often more effective when sellers intimately understand the needs of their customers, and when customers have more information to make important decisions. Thanks to the variety of beneficial resources, information, and services made possible by the Internet, such interactions may be highly individualized, and tailored to the buyer's purchasing capacity, and relative influence.

What is another important advantage of a digital market over a traditional market, from a buyer's perspective?
a. Information asymmetry
b. Less price discrimination
c. Increased search costs
d. Improved transparency

Answer 1

From a buyer's perspective, an important advantage of a digital market over a traditional market is improved transparency, aiding better-informed decisions.

Step-by-step explanation:

Another important advantage of a digital market over a traditional market, from a buyer's perspective, is improved transparency. With the emergence of the Internet, information about products and services is more readily available. Buyers can easily compare prices, read reviews, and access detailed product information. This level of transparency helps customers make more informed decisions, reducing issues related to information asymmetry where one party might have significantly more or better information than the other. In traditional markets, such access to information was much more limited, often leading to a power imbalance between sellers and buyers.