ideal market a hypothetical market, used as a tool of economic analysis, in which all relevant agents are perfectly informed of the price of the good in question and the cost of its production, and all economic transactions can be undertaken with no cost. A specific case is a market exemplifying perfect competition. The term is sometimes extended to apply to an entire economy consisting of ideal markets for every good. See also PERFECT COMPETITION , PHILOSOPHY OF ECO – NOMIC. A.N.