imperfect market

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Imperfect market

Economic environment in which the costs of labor and other resources used for production encourage firms to use substitute inputs that are less costly.

Imperfect Market

1. See: Market inefficiency.

2. A market where costs are too high, encouraging producers either to stop producing or to find ways to lower costs. For example, if labor costs are too high in an imperfect market, producers have an incentive to lower salaries, lay off employees, or cease operations altogether.

imperfect market

see MONOPOLISTIC COMPETITION.
References in periodicals archive ?
We have, therefore, adopted a farm household model with imperfect markets to investigate factors influencing rural farm households' decisions and levels of participation in fertilizer market.
Moreover, asymmetries of information were shown to be related to absent or imperfect markets.
The theoretical optimality of trade interventions in the presence of external distortions and oligopolistic markets (strategic trade policy), has been countered by questioning the empirical relevance of imperfect markets, the potential losses from anticipated retaliation, and lastly (mostly importantly in my opinion), the political economy implications pioneered by Bhagwati himself, along with Anne Krueger in the mid-1970s.
Letting imperfect markets loose in an already imperfect world simply produces more inequality, pollution, and alienation.
Beyond defending the importance of regulatory interventions, Kuttner also stresses that attempting to purify imperfect markets by trying to make them more superficially market-like may actually render them even more imperfect.
This means that Robinson provides a unique solution to the determination of the degree of exploitation in imperfect markets, which Pigou does not.
In Pakistan, inflation is a chronic economic disease spreading unabated generally by the official measures like increase in procurement prices, POL prices, electricity and gas tariffs and higher sales tax and excise duties, causing cost push impulses to fuel inflation in the economy, besides, institutional rigidities, structural bottlenecks, imperfect markets, rising cost of imported items which serves as raw materials (ingredients) for finished goods produced in the country.
Little attention is paid to the possibility of imperfect markets.
It is only in imperfect markets that good investments may not be funded.
While competition is generally regarded as an effective solution for many economic problems, its application to imperfect markets, such as the savings and loan industry, has inevitably produced undesirable consequences.
recession, but imperfect markets are also to blame, according to Wharton professors and investment experts.
focus on how information asymmetry affects the cost of capital in imperfect markets, expecting information asymmetry to affect firms' cost of capital when equity markets are imperfectly competitive (as the number of shareholders becomes small, idiosyncratic risk can affect the cost of capital).