Imperfect Competition

A type of market that does not operate under the rigid rules of perfect competition. Perfect competition implies an industry or market in which no one supplier can influence prices, barriers to entry and exit are small, all suppliers offer the same goods, there are a large number of suppliers and buyers, and information on pricing and process is readily available. Forms of imperfect competition include monopoly, oligopoly, monopolistic competition, monopsony and oligopsony.


Perfect competition is often viewed as a theoretical model, because every industry or market operates in some form of imperfect competition. For example, some industries rely on heavy initial capital investment, such as industrial manufacturers and telecom providers. This makes the prospect of having many competitors practically impossible. In the real world, markets are evaluated by their relative closeness to perfect competition, and efforts are made to approach it.


Investment dictionary. . 2012.

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  • imperfect competition — ➔ competition * * * imperfect competition UK US noun [U] ECONOMICS ► the situation in which there is little or no competition in a market, for example, because there is only one company selling a product and it can control its price and supply →… …   Financial and business terms

  • Imperfect competition — In economic theory, imperfect competition is the competitive situation in any market where the conditions necessary for perfect competition are not satisfied.Forms of imperfect competition include:* Monopoly, in which there is only one seller of… …   Wikipedia

  • imperfect competition — /ɪmˌpɜ:fɪkt ˌkɒmpə tɪʃ(ə)n/ noun the degree of competition in a market which is somewhere between a monopoly at one extreme and perfect competition at the other …   Marketing dictionary in english

  • imperfect competition — noun : competition among sellers of inhomogeneous products in which the sellers are sufficiently few in number so that each exerts an influence upon the market : limited competition …   Useful english dictionary

  • imperfect competition — Fin a situation that exists in a market when there are strong barriers to the entry of new competitors …   The ultimate business dictionary

  • imperfect — im‧per‧fect [ɪmˈpɜːfɪkt ǁ ɜːr ] adjective 1. MANUFACTURING imperfect goods, products etc have not been made completely correctly: • Years ago, manufacturers used shopping malls to unload imperfect goods. 2. ECONOMICS used to describe markets or… …   Financial and business terms

  • Competition (economics) — Competition in economics is a term that encompasses the notion of individuals and firms striving for a greater share of a market to sell or buy goods and services. Merriam Webster defines competition in business as the effort of two or more… …   Wikipedia

  • Competition — Intra or intermarket rivalry between businesses trying to obtain a larger piece of the same market share. The New York Times Financial Glossary * * * competition com‧pe‧ti‧tion [ˌkɒmpˈtɪʆn ǁ ˌkɑːm ] noun [uncountable] 1. COMMERCE a situation in …   Financial and business terms

  • competition — Intra or intermarket rivalry between or among businesses trying to obtain a larger piece of the same market share. Bloomberg Financial Dictionary * * * competition com‧pe‧ti‧tion [ˌkɒmpˈtɪʆn ǁ ˌkɑːm ] noun [uncountable] 1. COMMERCE a situation… …   Financial and business terms

  • Competition — For other uses, see Competition (disambiguation). A selection of images showing some of the sporting events that are classed as athletics competitions Competition is a contest between individuals, groups, animals, etc. for territory, a niche, or… …   Wikipedia

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