In economic theory, perfect competition is an idealized market structure where numerous small firms sell identical products, consumers have full information, and no single seller can influence the price. However, in the real world, markets rarely achieve perfect competition, as firms differentiate their products, set their own prices, and operate with some level of market power. This project challenges students to research whether perfect competition exists in modern markets, using economic analysis and real-world case studies.

Students will begin by reviewing the characteristics of perfect competition and identifying industries that come close to meeting these conditions. Common examples include agricultural markets, financial markets, and some e-commerce sectors, where competition is fierce, and no firm has total control over pricing. However, they should also explore how real-world factors—such as brand differentiation, economies of scale, and government regulations—disrupt perfect competition, making most markets monopolistic or oligopolistic rather than purely competitive.

A key part of this analysis will be investigating case studies of industries that appear highly competitive, such as local farmer’s markets, online stock trading, or generic pharmaceutical production. Students should assess to what extent these industries meet the theoretical criteria and whether perfect competition is realistically sustainable in today’s global economy. They should also examine whether technological advancements, government policies, or market consolidation trends push industries further away from perfect competition.

The final research paper should compare economic theory with real-world market behavior, providing evidence-based conclusions on whether perfect competition is achievable or merely a theoretical benchmark. The goal of this project is to help students understand how market structures influence pricing, competition, and consumer choices and why real-world markets often deviate from textbook models.