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Business dealings between independent and rational parties who are looking out for their own interests.

Investopedia Says:

For example:

if two strangers are involved in the sale and purchase of a house, it is likely that the final agreed-upon price will be close to market value (assuming that both parties have equal bargaining power and equal information about the situation). This is because the seller would want a price that is as high as possible and the buyer would want a price that is as low as possible.

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14y ago

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