imperfect competition
C1-C2Formal; Academic
Definition
Meaning
A market condition where individual firms have some control over the price of their product because products are differentiated, there are barriers to entry, or information is not freely available to all participants.
Any market structure that deviates from the theoretical ideal of perfect competition. It encompasses monopolistic competition, oligopoly, and monopoly, where firms are price-makers to some degree and compete on factors other than just price.
Linguistics
Semantic Notes
This is a technical economic term. It is not used metaphorically or in everyday contexts to describe general rivalry.
Dialectal Variation
British vs American Usage
Differences
No significant lexical differences. Spelling follows regional conventions (e.g., 'behaviour' in BE contexts).
Connotations
Purely technical and neutral in both varieties.
Frequency
Used exclusively in economics, business, and academic contexts. Frequency is identical across varieties within those fields.
Vocabulary
Collocations
Grammar
Valency Patterns
[Imperfect competition] exists in [market].[Firm] operates under [conditions of imperfect competition].[Theory] explains [phenomenon] via [imperfect competition].Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “[none]”
Usage
Context Usage
Business
Analysts noted that the industry's high advertising spend was a clear sign of imperfect competition.
Academic
The paper's model incorporates imperfect competition to explain persistent price disparities.
Everyday
[Virtually never used]
Technical
Calibrating the DSGE model required estimating the degree of imperfect competition in the labour market.
Examples
By Part of Speech
verb
British English
- [No common verb form derived directly from the term]
American English
- [No common verb form derived directly from the term]
adverb
British English
- [No common adverb form]
American English
- [No common adverb form]
adjective
British English
- The oligopolistic market was a clear example of an imperfectly competitive environment.
American English
- Their pricing strategy was feasible only in an imperfectly competitive market.
Examples
By CEFR Level
- [Too advanced for A2]
- [Too advanced for B1]
- In many real-world markets, imperfect competition is the rule, not the exception.
- Governments sometimes regulate industries where imperfect competition leads to very high prices.
- The prevalence of imperfect competition undermines the predictive power of classical supply and demand models.
- Her thesis explored how digital platforms create new forms of imperfect competition through network effects.
Learning
Memory Aids
Mnemonic
Think IMPERFECT as in not perfect. In a perfect race (perfect competition), all runners are identical and know everything. In an IMPERFECT race, some runners have special shoes (product differentiation), some start closer to the finish line (barriers to entry), and others don't know the route (information asymmetry).
Conceptual Metaphor
MARKET IS AN ARENA (but one with uneven terrain and different rules for some participants).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid translating as 'несовершенный конкурент' (incorrect adjective-noun agreement). The correct term is 'несовершенная конкуренция'.
- Do not confuse with 'недобросовестная конкуренция' (unfair competition), which is a legal term.
Common Mistakes
- Using it to mean 'unfair' or 'dishonest' competition.
- Confusing it with 'imperfect information', which is only one possible cause.
- Using it as a countable noun (e.g., 'an imperfect competition'). It is generally non-count.
Practice
Quiz
Which of the following is NOT a characteristic of imperfect competition?
FAQ
Frequently Asked Questions
A monopoly is one specific type (an extreme form) of imperfect competition. Imperfect competition is the broader category.
Yes. Monopolistic competition involves many firms selling differentiated products (e.g., restaurants, clothing brands).
Perfect competition is a theoretical benchmark used by economists. Most real-world markets exhibit some form of imperfect competition.
Not necessarily. While it can lead to higher prices, product differentiation and innovation (spurred by this competition) can benefit consumers.