Perfect market

A perfect market is market that is structured to have no anomalies that would otherwise interfere with the best prices being obtained. Examples of this perfect market structure are:

  • A large number of buyers
  • A large number of sellers
  • Products are homogeneous
  • Information is freely available to everyone in the market
  • There is no collusion between the market participants

There are few perfect markets; those selling commodities, such as agricultural products, represent the closest approximation of a perfect market.