StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

What to Consider in Structure-Conduct-Performance Model - Essay Example

Comments (0) Cite this document
Summary
This essay "What to Consider in Structure-Conduct-Performance Model" describes all of the aspects that should be considered when deciding policies for the mergers between large firms. The paper gives an essential overview of the Structure-Conduct-Performance Model, the importance of equity and efficiency consideration and what outcomes should be expected in every stage of the process…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
What to Consider in Structure-Conduct-Performance Model
Read TextPreview

Extract of sample "What to Consider in Structure-Conduct-Performance Model"

Download file to see previous pages The best possible outcome for SA is when it plays L while SS plays U and the best possible outcome for SS is when it plays L, and the other plays U. These outcomes (L, U) and (U, L) are difficult to achieve. This is because these strategies are not dominant for both. There is an incentive for one player to deviate.
If the prices are decided every week then the strategy would change in terms of the components. For the repeated games, the Nash equilibriums of all the sub-games are the same as the equilibrium of each one-shot game. The number of components in the strategy would increase because of the repetition of the game (both would still play L, L) however the pay off associated with the game would be increase by times of the number of weeks in the case. For example, if this process is carried out for three weeks, then the payoffs associated with the game for SS and SA would be 3*50000,3*50000= 150000, 150000. 
The rational strategy that they would play would be to not lower the prices. This way none of them would have any incentive to deviate. Plus they would accumulate the maximum possible profit for each of the firms. If they both play L then the profits would be half of what they would earn if they do not change.
The purpose of this essay is to critically analyze the extent to which the efficiency and equity considerations should be taken into account in the Structure-Conduct-Performance Model when it comes to deciding policies for the mergers between large firms. Firstly, the paper talks briefly about the Structure-Conduct-Performance Model and then moves onto discuss the importance of equity and efficiency in policy-making for mergers.
According to the Structure-Conduct-Performance Model, the performance of any industry depends on the firms’ conduct in the industry. The Conduct of the firms, in turn, depends on the structure of the market. The structure of the market may include factors like the overall competitiveness, the number of buyers and sellers. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(What to Consider in Structure-Conduct-Performance Model Essay, n.d.)
What to Consider in Structure-Conduct-Performance Model Essay. https://studentshare.org/macro-microeconomics/1736966-economics-319-2
(What to Consider in Structure-Conduct-Performance Model Essay)
What to Consider in Structure-Conduct-Performance Model Essay. https://studentshare.org/macro-microeconomics/1736966-economics-319-2.
“What to Consider in Structure-Conduct-Performance Model Essay”. https://studentshare.org/macro-microeconomics/1736966-economics-319-2.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF What to Consider in Structure-Conduct-Performance Model

UK Domestic Gas & Electricity markets: A Case Study based on Structure-Conduct-Performance model

...? UK Domestic Gas & Electri markets: A Case Study based on ‘Structure-Conduct-Performancemodel Introduction: The United Kingdom gas and electricity industry is known to have its own Big Six or major suppliers. The constant rise of gas and electricity costs despite news about prices in global market to decrease have placed many end consumers restless and doubtful about fair market practise of suppliers or firms, most specifically the Big Six. In addition, the regulating offices Competition Commission and Office of Gas and Electricity Markets have performed below consumer satisfaction. This paper will try to demonstrate the dominant role of the gas and electricity firm in the market despite presence of regulating bodies as a result...
4 Pages(1000 words)Essay

Organizational Structure and Performance

...? Organizational Structure and Performance How Rossetti’s strategic leadership affected the structure and performance of the IRS? Introduction An organizational structure may be defined as the general anatomy of the organization that provides the main structural foundations by which the organization functions. The structure employed in an organization is the determinant of the behavior of the employees. Most structures designed to regulate the influences of individuals and promote the unity and team work within the regulations of the agency. It states the tasks, responsibilities and procedures of conduct of all the individual employees in the agency. For any organizational structure to succeed towards performance, it needs to have...
4 Pages(1000 words)Essay

Market structure, conduct and performance: Violations of antitrust laws

...? Market structure, conduct and performance: Violations of antitrust laws BY YOU YOUR SCHOOL INFO HERE HERE Market structure, conduct and performance Introduction In 2012, the United States of America filed a lawsuit against Apple, Inc., Harper Collins, and several other organisations indicating a violation of antitrust laws. Antitrust laws are competition laws which prohibit companies from engaging in practices that block the practice of free trade between competing businesses in a free market economy. Antitrust further regulates companies from engaging in practices that create the ability to dominate a market, such as price gouging or other predatory pricing strategies (Taylor 2006). In the aforementioned lawsuit, the U.S. alleged...
6 Pages(1500 words)Essay

The Banking Industry of China: Structure-Conduct-Performance Analysis

...Running head: The Banking Industry of China: Structure-Conduct-Performance Analysis The Banking Industry of China: Structure-Conduct-Performance Analysis [Writer's Name] [Institution's Name] Executive summary: The purpose of the paper is to undertake the Structure-Conduct-Performance analysis of the Banking Industry in China. With the increasing foreign direct investment in China and the adoption of relatively flexible trade policy and regulations the banking industry in China resulted as robust growth in the last decade. The foreign banks are giving a healthy competitive environment to the Chinese local and state owned banks. The local banks suffer the hindrances such as bad loans, modern bank management techniques...
8 Pages(2000 words)Essay

Ownership Structure and Company Performance

...Ownership structure and company performance (A report to the Board of Directors of JP Drew) I. Introduction This report investigated the relationship between ownership structure and company performance based on an available data set. The literature has produced a number of studies on the relationship between company structure and performance. For example, this is the findings of Mudambi and Nicosia (1998, p. 180), Gursoy and Aydogan (1998), and Welch (2003). Welch (2003) is one of the latest and concluded that company structure affects firm performance using regressions with adjusted R squares of only 0.30 or 30%. The adjusted R square indicate the percentage of variation in the dependent variable can be explained by the variation...
7 Pages(1750 words)Assignment

Organization Structure and Performance

...Organization Structure and Performance of Starbucks Corporation. 29 January Introduction Organizational structure is a vital part of any organization and plays very important role in the success of any organization. The Starbucks Corporation has become a well-known globally successful company. Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality Arabica coffee in the world (Ford, 2005). This paper will provide (a) the structure of Starbucks Co. and differentiate it from other types of organizational structures (b) describe and analyze the organizations strategy and its structure and leadership (c) assess the role of leadership in determining the organizations structure. Organizational Structure...
2 Pages(500 words)Essay

Conduct, Misconduct and the structure of Science

... Proffesor’s Conduct, Misconduct and the Structure of Science Baconian inductivism, this is an investigative method brought forward by Sir Francis Bacon, It involves inductive reasoning, by evaluating or constructing general propositions that have been derived from specific evidence or examples.                 Advocates of these Ideas can define scientific Misconduct as, violation of the accepted standard codes by a scientist by failing to record all his/her observations, and also failing to assert only hypothesis that are strongly inductively supported by evidence. 2.        Properian Falsification, developed by Karl Popper, according to his Ideas, we should only test hypothesis by deducing from it testable prediction. Should...
2 Pages(500 words)Article

Ownership Structure and Financial Performance

...Ownership Structure and Financial Performance The basic aim of the paper is to conduct a detailed exploring the impact of ownership structure on firm’s performance. In order to develop a discussion on this relation corporate governance practices from two Anglo-American countries that are UK and US have been discussed. In this regard, firstly the paper examines the dimensions of ownership structures. Ownership structure is distinguished on the basis of two measures including ownership identity and ownership concentration. Ownership identify is related to the real owners of the business and ownership concentration reflects the proportion of voting shares held by owners of the business. Moreover, the paper talks about the measurement...
7 Pages(1750 words)Essay

Structure, Conduct and Performance Model in the Mobile Phone Industry

...Structure, Conduct and Performance Model in the Mobile Phone Industry Structure, conduct and performance In the SCP model structure means the features and organization of the market. The model’s principle idea is that “industry structure determined the behaviour or conduct of firms, whose joint conduct then determined the collective performance of the firms in the marketplace” (Luo, 2014, p.113). In a more collective term it indicates the significance of the relative size of the primary (agriculture), secondary (industry), and tertiary (service) sectors. The second version of structure is the number and size of major companies in the industry. For instance, in UK market study is conducted based on the total output of the 100 biggest firms...
10 Pages(2500 words)Assignment

Logic Model and Performance Managements

...LGBT Community Program Introduction The LGBT Community Program is intended to evaluate the complications encountered by lesbians, gays, bisexuals and transgender people in attempt to acquire healthcare and other vital resources. Program description The LGBT Community Program involves the LGBT community and the problems they encounter in medical and health care centres as well as the discrimination they encounter from the general public. The primary activities in this program are public awareness campaigns and provision of better health care services. The overall goal is to help lesbians, gays, bisexuals and transgender people to overcome discrimination in their attempts to secure quality public health care facilities (McKay, 2011... Community ...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic What to Consider in Structure-Conduct-Performance Model for FREE!

Contact Us