The Structure-Conduct-Performance Paradigm

Abstract

The structure-conduct-performance (SCP) approach — based exclusively upon neoclassical theory — has long been central to the study of industrial organisation (Section 1.2). SCP postulates causal relationships between the structure of a market, the conduct of firms in that market and economic performance. It has been used to provide the theoretical justification for competition policy (Sections 8.3-8.9). Here SCP has provided the rationale for measures intended to modify (or to prevent) the development of market structures likely to promote behaviour and performance detrimental to the public interest.