Describe the information asymmetry from the perspective

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Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose you are trying to sell a company a new accounting system that will reduce costs by 10%. Instead of naming a price, you offer to give them the product in exchange for 50% of their cost savings.

Question 1: Describe the information asymmetry from the perspective of both sides, the adverse selection problems from the perspective of both sides, and why and how soft selling can be a successful signal.

Reference no: EM132516544

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