In economic theory, imperfect competition, is the competitive situation in any market where the conditions necessary for perfect competition are not satisfied. Perfect competition is an economic model that describes a hypothetical market form in which no producer or consumer has the market power to influence prices. ...
Forms of imperfect competition include:
Monopoly, in which there is only one seller of a good.
Oligopoly, in which there is a small number of sellers.
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 is a small number of buyers.
There may also be imperfect competition in markets due to buyers or sellers lacking information about prices and the goods being traded. A monopoly (from the Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service, in other words a firm that has no competitors in its industry. ... This article does not cite any references or sources. ... Monopolistic competition is a common market form. ... In economics, a monopsony (from Ancient Greek μόνος (monos) single + ὀψωνία (opsÅnia) purchase) is a market form with only one buyer, called monopsonist, facing many sellers. ... An oligopsony is a market form in which the number of buyers are small while the number of sellers in theory could be large. ...
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. A jobless recovery is a phrase used by economists to describe the recovery from a recession which does not produce strong growth in employment. ... This article does not cite any references or sources. ...
(Minority report: imperfect competition means something like "oligopoly or monopolistic competition", and monopoly is not imperfect competition.)
Competitive industrial capitalism had become a world-wide force, but, as industrial production and organisation expanded, free competitive markets appeared to be giving way to monopolistic forms of business organisation.
Her analysis shifts attention from the perfectly elastic demand of the competitive firm imagined by Marshall to a business environment in which it is necessary to reduce price to sell more product, an environment characterised by monopoly rather than competition in the traditional sense.
What ImperfectCompetition was ultimately directed to was establishing the extent to which monopoly was responsible for redistributing income in society from workers to capitalists.
Since the pharmaceutical industry profits handsomely from the imperfectcompetition brought on by these interventions, we will argue that the drug prices ought to be "reasonable." In some cases, this might entail that the government regulate pharmaceutical companies as it would a public utility: a lesson that other liberal democracies have already learned.
Imperfectcompetition may appear on either the supply or demand side of a market.
On the supply side, imperfectcompetition, occurs when either a single seller (monopoly) or a group of sellers (oligopoly) operating in collusion, are capable of unilaterally controlling both supply and price of a product or service for which there is no substitute.
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