Abstract: The problem of China’s rural information products market is caused by the multi-factors at the present stage, but the author believes that the key questions in rural information market are the information asymmetry and externalities. On this basis we mainly study these kinds of elements of enterprises and peasant household: the Prisoner’s Dilemma, lemon market, price increase and the negative external effects which due to the special nature and information asymmetry of the rural information market.