An important hallmark of private information markets is that typically there is a business relationship between clients and information sellers. Prices are set through a negotiation process and, as a result, information sellers know their customers' problems well enough going in to place an accurate value on the consulting service they are about to offer. Sarvary considers how private information sellers should price their products in competitive situations and whether they should target all consumers in their initial search for information or cater only to consumers with a high need for a second opinion. The medical profession is a familiar example of a private information market with second-opinion services. When a disease is diagnosed, another opinion is routinely sought.
Some physicians provide nothing but second opinions.
While they see only a small percentage of patients, their services are more highly valued. Second-opinion services are frequently found in engineering, finance, marketing, and law. They are also plentiful among portfolio analysts. That is, a second opinion usually follows a first opinion that contradicts the consumer's prior assumptions. For example, company executives might receive a market projection analysis done by one consultant but find that its recommendation runs counter to their intuition about their own markets.