<p>In theory, yes.</p>
<p>In reality, no.</p>
<p>Perhaps the best example is the (simplest kind of) <a href="https://en.wikipedia.org/wiki/Dynamic_stochastic_general_equilibrium" rel="nofollow noreferrer">DSGE</a> model, in which goods, labor, and capital markets are all <em>assumed</em> to be perfectly competitive. And yes, perfect competition is assumed rather than derived, because as @MichealGreinecker comments, it is a theoretical construct, not a reality. So, as long as there are good reasons for making such an assumption (e.g. for tractability or simplicity) and that it does not lead to internal inconsistencies, you can have as many such markets in your model as you want.</p>

CC BY-SA 4.0
2024-10-03T01:36:39.473Z
2024-10-03T01:36:39.473Z
Herr K.
<p>Can there be two or more distinct perfectly competitive markets in an economic system at the same time?</p>

CC BY-SA 4.0
2024-10-02T23:46:48.543Z
Perfect competition is a theoretical idealized construct. The question only really makes sense in the context of a specific model.
Michael Greinecker
CC BY-SA 4.0
2024-10-03T02:49:01.510Z
Logically, impossible. Because the cross-market flow of factors of production will make the prices of factors of production in each market tend to be the same, and finally lead to the same price of commodities in all markets, so that multiple markets become the same market.
杨先生
CC BY-SA 4.0
2024-10-03T13:39:48.813Z
How do a market for cars and a market for apples become the same market?
Herr K.
<microeconomics><perfect-competition>
Can there be more than two perfectly competitive markets in an economic system at the same time?
杨先生
# Can there be more than two perfectly competitive markets in an economic system at the same time?

(Asked by: username_0 on 2024-10-02)

Can there be two or more distinct perfectly competitive markets in an economic system at the same time?

**Tags:** microeconomics, perfect-competition

> **Comments:**
> **username_1**: Perfect competition is a theoretical idealized construct. The question only really makes sense in the context of a specific model.  
> **username_0**: Logically, impossible. Because the cross-market flow of factors of production will make the prices of factors of production in each market tend to be the same, and finally lead to the same price of commodities in all markets, so that multiple markets become the same market.  
> **username_2**: How do a market for cars and a market for apples become the same market?  

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## 1 answers

### Answer by username_2 on 2024-10-03. Score: 1

In theory, yes.

In reality, no.

Perhaps the best example is the (simplest kind of) [DSGE](https://en.wikipedia.org/wiki/Dynamic_stochastic_general_equilibrium) model, in which goods, labor, and capital markets are all *assumed* to be perfectly competitive. And yes, perfect competition is assumed rather than derived, because as @MichealGreinecker comments, it is a theoretical construct, not a reality. So, as long as there are good reasons for making such an assumption (e.g. for tractability or simplicity) and that it does not lead to internal inconsistencies, you can have as many such markets in your model as you want.


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