Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Perfect competition, also known as pure competition, is an idealized market condition in which many sellers compete to offer the best prices, and large sellers have no advantages over smaller ones.

Unlike perfect competition, where numerous small firms compete with identical products, imperfect competition is characterized by fewer firms, differentiated products and barriers to entry. This ...