An imperfect market may be defined as a market in which prices of goods can easily be influenced or determined by the sellers or buyers. (i.e. sellers or buyers are price dictators).
Examples of imperfect markets are monopoly, monopolistic competition monophony, Oligopoly, and Duopoly.
Type of Imperfect Market
1. Monopoly: This is an imperfect market in which there is a single seller of a particular good or service.
2. Duopoly: This is a market structure in which there are only two producers of the same commodity.
3. Oligopoly: This is an imperfect market in which there are few producers or sellers of the product with close substitutes.
4. Monosony: This is a type of market with a single buyer for a product. e.g. Marketing Board of West Africa is the only buyer of cash crops on behalf of the government in order to boost export.
5. Monopolistic Competition: This is a market, where there is a large number of producers dealing in different products or services such that the number of products of one firm is seen as a perfect substitute for that of another.