Perfect and Imperfect Competition

Takashi Negishi
Additional contact information
Takashi Negishi: The Japan Academy

Chapter Chapter 6 in Elements of Neo-Walrasian Economics, 2014, pp 91-107 from Springer

Abstract: Abstract So far we have been assuming that markets are perfectly competitive and consumers and firms are taking market prices as given. The assumption is justified by the supposition that there are very large number of consumers and firms so that market prices are not much affected by the actions of any single consumer or firm. As a result of perfect competition, equilibrium prices are equalized to marginal costs. Perfect competition is, however, an exceptional polar case, which should be regarded as an idealistic or limiting situation, since many firms are not taking prices as given and prices are, in general, different from marginal costs in the real world. While perfectly competitive markets are homogeneous and resemble one another as happy families, imperfectly competitive markets are heterogeneous and imperfect, like unhappy families, in many different ways.

Keywords: Marginal Cost; Demand Curve; Indifference Curve; Inverse Demand Function; Nash Solution (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advchp:978-4-431-54535-4_6

Ordering information: This item can be ordered from
http://www.springer.com/9784431545354

DOI: 10.1007/978-4-431-54535-4_6

Access Statistics for this chapter

More chapters in Advances in Japanese Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().