what is an imperfect market 
an imperfect market refers to any economic market that does not meet the rigorous standards of the hypothetical perfectly or purely competitive market pure or perfect competition is an abstract theoretical market structure in which a series of criteria are met since all real markets exist outside of the spectrum of the perfect competition model all real markets can be classified as imperfect markets in an imperfect market individual buyers and sellers can influence prices and production there is no full disclosure of information about products and prices and there are high barriers to entry or exit in the market a perfect market is characterized by perfect competition market equilibrium and an unlimited number of buyers and sellers understanding imperfect marketsall real world markets are imperfect thus the study of real markets is always influenced by competition for market share high barriers to entry and exit different products and services prices set by price makers rather than by supply and demand imperfect or incomplete information about products and prices and a small number of buyers and sellers for example traders in the financial market do not possess perfect or even identical knowledge about financial products the traders and assets in a financial market are not perfectly homogeneous new information is not instantaneously transmitted and there is a limited velocity of reactions 