Markets are often classified in terms of the nature of competition and collaboration they facilitate. In economic analysis, if the elements of competitions are “pure” then the market is designated as a pure market. On the other hand, if the element of competition is “impure”, then the market is designated as “impure market”.

The purity of competition in a market depends on a number of cardinal factors, such as the number of transacted in the market ,the nature of items (good or a services) transacted  in the market and the freedom of movement (entry or exit) enjoyed by the transistor in a market. If a large number of buyers and sellers are transistor in a market. If a large number of buyers and sellers are transacting by way of exchange of homogeneous goods or services and while doing so if these buyers and sellers enjoy the freedom of movement (entry or exist), then the competition is pure. By contrast, if in any market ,the above conditition of large number  of transistors, of homogeneity, of item, traded and transacted and violated, then the competition because impure and accordingly, the market also become impure.