Chapter

From Perfect to Imperfect Competition

Jean J. Gabszewicz

in Strategic Interaction and Markets

Published in print January 2000 | ISBN: 9780198233411
Published online November 2003 | e-ISBN: 9780191596292 | DOI: http://dx.doi.org/10.1093/0198233418.003.0002
From Perfect to Imperfect Competition

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Examines in turn the four assumptions defining a perfectly competitive market: a large number of buyers and sellers, no entry barrier, product homogeneity, and perfect information. Then, we state the problems arising when these assumptions are relaxed: existence of entry barriers, collusion of economic agents, product differentiation, and competition with uninformed buyers. An introduction to the basic game‐theoretic equilibrium concepts used in the book is also provided at the end of this chapter.

Keywords: barriers to entry; collusion; equilibrium; game theory; imperfect information; market structure; product differentiation

Chapter.  12423 words.  Illustrated.

Subjects: Microeconomics

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