Imperfect competition in markets reshapes macroeconomics, offering richer insights.
The article discusses how most economic theories assume perfect competition in markets, but in reality, markets are imperfect. This means sellers have some control over prices and need to predict demand. The researchers explore the effects of imperfect competition on the economy. They present a model that allows for different outcomes based on market conditions. The study shows that simple models can provide a better understanding of how competition impacts the economy.