structuurconductprestatie

Structuurconductprestatie, often abbreviated SCP-model, is a framework in industrial organization used to analyze how market structure influences firm conduct and, in turn, market performance. The approach originated with economist Joe Bain in the 1950s and has since become a foundational perspective in competition policy, regulation, and empirical IO research.

The model identifies three interconnected components. Structure refers to the underlying characteristics of the industry, such as the number of firms, market concentration, barriers to entry, product differentiation, and the level of vertical integration. Conduct covers the strategic decisions of firms, including pricing, advertising, product development, R&D, capacity choices, and potential collusive behavior. Performance encompasses market outcomes such as prices, output, profitability, efficiency, innovation, and overall welfare for consumers and society.

A central claim of the SCP framework is that a more concentrated or less contestable structure tends to lead to less competitive conduct and, consequently, less favorable performance. However, the model also acknowledges feedback loops and external factors, recognizing that performance can influence structure over time and that changes in technology or regulation can alter both structure and conduct.

Applications of SCP include assessing the competitive effects of mergers and market entry, analyzing regulation and policy impacts, and guiding antitrust and regulatory decisions. Criticisms focus on endogeneity, the difficulty of establishing causality, and the simplifications inherent in linking structure directly to conduct and performance. As a result, SCP is often complemented by more modern approaches in empirical industrial organization.