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4. Imperfect Competition & Imperfect Information (HL) In practice power often lies to a greater extent with producers than with consumers. Most firms operate under conditions of imperfect competition with monopolists and oligopolists able to restrict output and raise prices. They can also prevent new firms from entering the industry. Governments will often regulate markets where imperfect competition is highly evident. Market failure also exists when an economic decision is made based on incomplete information. One such case is known as asymmetric information, where one party in a transaction has access to more information or better information than the other party. In most cases the producer has more information than the consumer and so can charge a higher price than is socially efficient. Technology and the internet have had the effect on rebalancing this relationship as consumers now have access to much more information.