Structure-conduct-performance paradigm
The structure-conduct-performance paradigm is like a cycle: it starts with the structure of an industry, then moves on to how companies act (or "conduct") in the industry, finally ending with the overall performance of the industry.
Let's break it down.
Structure: This refers to the amount of companies that are in the industry. For example, if there are only 5 companies, the structure would be considered quite small.
Conduct: This refers to how these companies behave in the industry. Are they working together, competing against each other, or using other strategies?
Performance: This refers to how well the industry is doing overall. Are the companies making money? Are they providing good products? This can be measured by looking at how much money the industry is making, or how customers rate the products.
So, the structure-conduct-performance paradigm is like a cycle: first, the structure of the industry is looked at, then the conduct of the companies in the industry is looked at, and finally, the performance of the industry is measured. This information helps us figure out how to make the industry work better.
Let's break it down.
Structure: This refers to the amount of companies that are in the industry. For example, if there are only 5 companies, the structure would be considered quite small.
Conduct: This refers to how these companies behave in the industry. Are they working together, competing against each other, or using other strategies?
Performance: This refers to how well the industry is doing overall. Are the companies making money? Are they providing good products? This can be measured by looking at how much money the industry is making, or how customers rate the products.
So, the structure-conduct-performance paradigm is like a cycle: first, the structure of the industry is looked at, then the conduct of the companies in the industry is looked at, and finally, the performance of the industry is measured. This information helps us figure out how to make the industry work better.