What is an imperfect competition?
The imperfect competition is a term used to describe a market that does not present conditions that characterize perfect competition. In the real world, it is virtually impossible to achieve the goal of perfect competition in which no power has much to manipulate the market. As a result, most markets around the world show characteristics of imperfect competition. Some examples of markets that can be considered examples of this type of market include: oligopoly, monopolistic competition, monopoly and monopsons. There are a number of factors that can lead to imperfect competition and it is not unusual to see several factors involved in one market. These factors can sometimes be easily identifiable and, in other cases, in nature or origin, it may be the most progressive to determine which forces are acting on the market.
One problem is the lack of accurate information. Buyers and sellers can cover information with the aim of obtainingt better solution, which can contribute to imperfect competition. Seller marketing sellers can also contribute, as the question for consumers is reduced less to the highest costs than the quality and context of the product. Another characteristic that in this market structure, sometimes see the presence of barriers that can make it difficult to enter the market, such as high costs of launching or strict government regulations.
largely, businesses and consumers are interested in getting in advance and stay there, whether it is an individual agreement or on the market as a whole. As a result, they can work against each other and contribute to the development of imperfect competition. It is rare to find a market in which the competition is perfectly balanced and can be said to be "perfect", last but not least, because perfect competition does not necessarily lead to the best profits for businesses.
The idea of an imperfect competition was presented in the 20th century by British economist Joan Robinson. Robinson discussed the concept in 1933 and contributed a number of daLightening scholarships into the world of economy. She spent a lot of time studying developing nations and was very interested in the manifestations of communism she saw in Russia and China. Her husband was also a well -known economist.