Monopolistic Competition - Imperfect Information

Imperfect Information

No sellers or buyers have complete market information, like market demand or market supply.

Market Structure comparison
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 ...
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 ...

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