imperfect competition

  

Definition

Real world' competition that is less effective in lowering price levels nearer to the cost levels than the theoretical perfect competition. Conditions that help cause imperfect competition include (1) restricted flow of information on costs and prices, (2) near monopoly power of some suppliers, (3) collusion among sellers to keep prices high, and (4) discrimination by sellers among buyers on the basis of their buying power.

Use this term in a sentence

  • When you find yourself facing imperfect competition you must come up with new strategies to move your product as quickly as you can.

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  • You may find yourself in a situation where there is imperfect competition and you will need to figure out a way to make it work.

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  • We had a lot of imperfect competition and it gave us a lot of confidence because we really liked to compete.

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