The Structure-Conduct Performance paradigm The CausalⅤiew Market Conduct Performance Structure The Feedback Critique No one-way causal link Conduct can affect market structure Market performance can affect conduct as well as market structure Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 The Structure-Conduct￾Performance Paradigm • The Causal View Market Structure Conduct Performance • The Feedback Critique n No one-way causal link. n Conduct can affect market structure. n Market performance can affect conduct as well as market structure