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Structure-conduct-performance

From roughly 1890 till 1970 year, the “structure-conduct-performance paradigm” controlled theories regarding how firms behave in various types of markets. The term “structure” in this expression refers to such things that: (1) decisions by firms regarding pricing, production, profitability, investments in research and development as well as marketing strategies. (2) how the distribution of income is influenced by the activities of unregulated firms. (3) the numbers of firms, the markets from that these firms hire resources, and the types of goods produced then sold. (4) the relative effects on social welfare of different possible industrial structures. (5) All of the above.

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