Imperfect Information
No sellers or buyers have complete market information, like market demand or market supply.
| Number of firms | Market power | Elasticity of demand | Product differentiation | Excess profits | Efficiency | Profit maximization condition | Pricing power | |
|---|---|---|---|---|---|---|---|---|
| Perfect Competition | Infinite | None | Perfectly elastic | None | No | Yes | P=MR=MC | Price taker |
| Monopolistic competition | Many | Low | Highly elastic (long run) | High | Yes/No (Short/Long) | No | MR=MC | Price setter |
| Monopoly | One | High | Relatively inelastic | Absolute (across industries) | Yes | No | MR=MC | Price setter |
Read more about this topic: Monopolistic Competition
Other articles related to "imperfect information, information":
Finite Extensive-form Games - Imperfect Information
... An information set is a set of decision nodes such that Every node in the set belongs to one player ... When play reaches the information set, the player with the move cannot differentiate between nodes within the information set i.e ... if the information set contains more than one node, the player to whom that set belongs does not know which node in the set has been reached ...
... An information set is a set of decision nodes such that Every node in the set belongs to one player ... When play reaches the information set, the player with the move cannot differentiate between nodes within the information set i.e ... if the information set contains more than one node, the player to whom that set belongs does not know which node in the set has been reached ...
Game Theory - Types of Games - Perfect Information and Imperfect Information
... of sequential games consists of games of perfect information ... A game is one of perfect information if all players know the moves previously made by all other players ... Thus, only sequential games can be games of perfect information because players in simultaneous games do not know the actions of the other players ...
... of sequential games consists of games of perfect information ... A game is one of perfect information if all players know the moves previously made by all other players ... Thus, only sequential games can be games of perfect information because players in simultaneous games do not know the actions of the other players ...
Famous quotes containing the words information and/or imperfect:
“The family circle has widened. The worldpool of information fathered by the electric media—movies, Telstar, flight—far surpasses any possible influence mom and dad can now bring to bear. Character no longer is shaped by only two earnest, fumbling experts. Now all the world’s a sage.”
—Marshall McLuhan (1911–1980)
“International relationships are ... preordained to be clumsy gestures based on imperfect knowledge.”
—Rebecca West (1892–1983)
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