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.
Unable to display preview. Download preview PDF.