In economic theory, imperfect competition is the competitive situation in any market where the sellers in the market sell different/dissimilar of goods, (haterogenous) that does not meet the conditions of perfect competition.
Forms of imperfect competition include:
- Monopoly, in which there is only one seller of a good.
- Oligopoly, in which there are few sellers of a good.
- Monopolistic competition, in which there are many sellers producing highly differentiated goods.
- Monopsony, in which there is only one buyer of a good.
- Oligopsony, in which there are few buyers of a good.
- Information asymmetry when one competitor has the advantage of more or better information.
There may also be imperfect competition due to a time lag in a market. An example is the “jobless recovery”. There are many growth opportunities available after a recession, but it takes time for employers to react, leading to high unemployment. High unemployment decreases wages, which makes hiring more attractive, but it takes time for new jobs to be created.
Other articles related to "imperfect competition, competition":
... with the near simultaneous publication of their respective books, The Economics of Imperfect Competition (1933) and The Theory of Monopolistic Competition (1933), introduced models of ... Joan Robinson's work on imperfect competition, at least, was a response to certain problems of Marshallian partial equilibrium theory highlighted by Piero Sraffa ...
... Perfect competition describes a market structure such that no participants are large enough to have the market power to set the price of a homogeneous product ... Imperfect competition refers to market structures where the conditions of perfect competition do not exist ... Forms of imperfect competition include monopoly (in which there is only one seller of a good), duopoly (in which there are only two sellers of a good), oligopoly (in which there are few ...
Famous quotes containing the words competition and/or imperfect:
“The elements of success in this business do not differ from the elements of success in any other. Competition is keen and bitter. Advertising is as large an element as in any other business, and since the usual avenues of successful exploitation are closed to the profession, the adage that the best advertisement is a pleased customer is doubly true for this business.”
—Madeleine [Blair], U.S. prostitute and madam. Madeleine, ch. 5 (1919)
“Growing up means letting go of the dearest megalomaniacal dreams of our childhood. Growing up means knowing they cant be fulfilled. Growing up means gaining the wisdom and skills to get what we want within the limitations imposed by realitya reality which consists of diminished powers, restricted freedoms and, with the people we love, imperfect connections.”
—Judith Viorst (20th century)