Perfect Competition and Market Imperfections

  • Victor J. Tremblay
  • Carol Horton Tremblay
Part of the Springer Texts in Business and Economics book series (STBE)


Competition is a fundamental concept in a market economy. We can think of competition as firm rivalry, where one firm battles to gain a strategic advantage over its competitors. For example, General Motors and Ford have been competing with one another for over a century to produce better cars at lower cost and to create more catchy marketing campaigns. We can also think of competition as a type of market structure. Both concepts are important in industrial organization. In later chapters, we analyze various forms of competitive behavior. In this chapter, we review the market structure of perfect competition.


Equilibrium Price Market Failure Consumer Surplus Demand Curve Input Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Akerlof GA (1970) The market of ‘Lemons’: quality uncertainty and the market mechanism. Quart J Econ 84(3):488–500CrossRefGoogle Scholar
  2. Baumol WJ, Panzar JC, Willig R (1982) Contestable markets and the theory of industry structure. Harcort Brace Javonovich, Inc., New YorkGoogle Scholar
  3. Färe R, Grosskopf S, Knox Lovell CA (1985) The measurement of efficiency of production. Springer, New YorkGoogle Scholar
  4. Frank RH, Bernanke BS (2008) Principles of microeconomics. Irwin Publishing, BostonGoogle Scholar
  5. Mankiw GN (2011) Principles of microeconomics. South-Western College Publishing, Cincinnati, OHGoogle Scholar
  6. Mas-Colell A, Whinston MD, Green J (1995) Microeconomic theory. Oxford University Press, New YorkGoogle Scholar
  7. Nicholson W, Snyder C (2012) Microeconomic theory: basic principles and extensions. South-Western, OH, USGoogle Scholar
  8. Pindyck RS, Rubenfield DL (2009) Microeconomics. Pearson Prentice Hall, Upper Saddle River, NJGoogle Scholar
  9. Shy O (2011) A short survey of network economics. Rev Ind Organ 38(2):119–149CrossRefGoogle Scholar
  10. Smith A (1776) An inquiry into the nature and causes of the wealth of nationsGoogle Scholar
  11. Stiglitz J (1987) Technological change, sunk costs, and competition. Brookings Pap Econ Act 1987(3):883–937CrossRefGoogle Scholar
  12. Varian HR (2010) Intermediate microeconomics: a modern approach. W.W. Norton, New YorkGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC 2012

Authors and Affiliations

  • Victor J. Tremblay
    • 1
  • Carol Horton Tremblay
    • 1
  1. 1.Department of EconomicsOregon State UniversityCorvallisUSA

Personalised recommendations