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Organizational Structure and Policy: Industrial Organization

In: Property Rights and Managerial Decisions in For-profit, Nonprofit, and Public Organizations

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  • Kathleen A. Carroll

Abstract

The field of industrial organization traditionally has examined the relationship between industry concentration and profit. This traditional approach is based on the structure-conduct-performance (SCP) paradigm advanced by Bain (1958). This theory has been subject to considerable criticism as I describe in Chapter 2. Expanded theories of industrial organization incorporate factors other than concentration that can affect profitability such as entry conditions and in particular scale economies, product differentiation, advertising, and research and development activities. Despite this, the SCP model serves as the basis for antitrust and economic regulation policies in the US and European Union.

Suggested Citation

  • Kathleen A. Carroll, 2004. "Organizational Structure and Policy: Industrial Organization," Palgrave Macmillan Books, in: Property Rights and Managerial Decisions in For-profit, Nonprofit, and Public Organizations, chapter 10, pages 148-163, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-4039-4809-0_10
    DOI: 10.1057/9781403948090_10
    as

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