The structure–conduct–performance (SCP) paradigm, first published by economists

Edward Chamberlin Edward Hastings Chamberlin (May 18, 1899 – July 16, 1967) was an American economist. He was born in La Conner, Washington, and died in Cambridge, Massachusetts. Chamberlin studied first at the University of Iowa (where he was influenced by Fr ...

and

Joan Robinson Joan Violet Robinson (''née'' Maurice; 31 October 1903 – 5 August 1983) was a British economist well known for her wide-ranging contributions to economic theory. She was a central figure in what became known as post-Keynesian economics. B ...

in 1933, and developed by

Joe S. Bain Joe Staten Bain (4 July 1912, Spokane, Washington – 7 September 1991, Columbus, Ohio) was an American economist associated with the University of California, Berkeley. Bain was designated a American Economic Association#Distinguished Fellows, Di ...

is a model in Industrial Organization Economics which offers a causal theoretical explanation for firm performance through economic conduct on incomplete markets. This model has had direct influence on subsequent

Industrial Economics In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the perfe ...

models such as

Porter's five forces analysis Porter's Five Forces Framework is a method of analysing the operating environment of a competition of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, ...

. According to the structure–conduct–performance paradigm, the market environment has a direct, short-term impact on the

market structure Market structure, in economics, depicts how firms are differentiated and categorised based on the types of goods they sell (homogeneous/heterogeneous) and how their operations are affected by external factors and elements. Market structure makes it ...

. The market structure then has a direct influence on the firm's economic conduct, which in turn affects its market performance. Therein, feedback effects occur such that market performance may impact conduct and structure, or conduct may affect the market structure. Additionally, external factors such as legal or political interventions affect the market framework and, by extension, the structure, conduct and performance of the market.

References

External links

Structure–conduct–performance paradigm
at Policonomics {{DEFAULTSORT:Structure-conduct-performance paradigm Industrial organization