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Notes_6_Jan_31 - Market Structure Conduct and Performance...

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AEB 3300 1 Market Structure, Conduct and Performance Module 1 Module 1 Notes 6 Notes 6 Chapters 12-13-15 Chapters 12-13-15
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AEB 3300 2 S-C-P Paradigm Structure : formal & informal rules which govern & influence choices that firms can make in an industry Conduct: actual choices and behavior of the firms Performance: outcomes resulting from conduct; can include changes to structure…
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AEB 3300 3 Getting from “Structure” to “Conduct” Given the rules (i.e., market structure), how do firms conduct themselves? In other words, Firms must make choices, as they try to find the “best” way to organize their purchases and sales within an industry or a marketing channel.
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AEB 3300 4 Types of Market Conduct Coordination by Price Perfectly competitive model… “Organized” Coordination
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