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Unformatted text preview: certain industries, regulation through social norms, and market regulation. No matter which regulation is used, all of these types of regulation bare some type of sanction if the regulation is broken. 4) In the industrial organization field of economics, the Structure-Conduct-Performance school of thought believes that an industrys performance is based on the conduct of its firms, which in turn is based on the structure of the industry. The structure of the industry can be thought of as the facts that determine how competitive the market is going to be, such as barriers to entry and the number of sellers and the number of buyers. However, the Chicago school of thought, when it comes to industrial organization, is that conventional Keynesian wisdom that strays from perfect competition, is anticompetitive behavior. This approach uses price theory, which shows how supply and demand affect price, in its economic analysis of industrial organization....
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- Spring '10