imperfect market


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Related to imperfect market: Monopolistic competition

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 assume missing market for land and imperfect market for labor and credit.
Pennington's celebration and defense of the imperfect market is valid but misses the mark.
Fixation of minimum/support price of sugarcane is not meant to replace the market-based prices but to provide a floor to the market and correct the short coming of the imperfect market often characterized by collusion among the mills.
Unfortunately, the converse of this axiom was also true, and the massive losses this sector suffered in the late 1980s and early 1990s proved that imperfect market information could lead to disaster.
Healthcare is known as an imperfect market because consumers do not pay the actual full price of medical care.
Earlier studies by UNCTAD have hinted that in an imperfect market dominated by a few large buyers, the possibility of collusion and price fixation in the auction cannot be ruled out More recently, the view is gaining ground that the auction system provides little incentive for value addition by producers, which has long-term implications on their profitability.
At a February 15 hearing before the House Subcommittee on Energy and Air Quality, the American Public Power Association (APPA) called on Congress and FERC to "address the imperfect market structure.
The market for health-care services is considered an imperfect market because--1) Health care is a heterogeneous product, as the patient can experience a range of outcomes; 2) Patients who are insured have third-party payers covering their direct medical expenses; and 3) A "market price" is lacking, i.
Armed with Charles Gifford's (a student of Austin Robinson) marginal revenue curve, Joan Robinson and Richard Kahn set about developing the box of tools that became the basis for standard neoclassical imperfect market theory for generations to come.
Indeed, the "liberal" policy of deregulating credit was accompanied by the preservation of a very imperfect market structure, in which seven banks controlled more than 70% of bank holdings as well as 70% of the capitalization of Spain's unusual stock market.
Even this imperfect market for accounting educators results in benefits to society as well as to accounting.