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.
According to him, it is the existence of imperfect markets
and less profit motives in the economic sphere which are the causes of corruption.
This was achieved through the creation of artificial scarcities in imperfect markets
Moreover, asymmetries of information were shown to be related to absent or imperfect markets
. They help explain why the market for lemons, or the credit or labor or equity markets worked imperfectly.
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.
Despite some critical questioning of Madden's work to be found in this commentary, the common ground is a basic agreement that policy evaluation involves a necessary weighing of imperfect markets
, with some results that are inefficient or unfair, against imperfect policy interventions with inefficiencies and other drawbacks of their own.
Should we place primary faith in imperfect bureaucrats or imperfect markets
? Markets sometimes fail.
"Increasing Returns, Imperfect Markets
, and Trade Theory," in Handbook of International Economics, Vol.
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.