Question

Is regulation part of the structure-conduct performance paradigm?

Answer 1

No, regulation is not a part of the structure-conduct-performance paradigm.

Reason:

Structure of a market is such that certain variables affect the behavior of buyers and sellers - quantity, price, type of product and competition all affect the market. In this market structure, buyers and sellers conduct themselves by behaving in a certain way among themselves. Firms also behave in their way - in strategies best beneficial to them through advertisement, market research etc. Performance is measured through variables like the quality of their products, resource allocation, production efficiency, etc.

In industrial economics, structure-conduct-performance paradigm measures the performance of firm in an industry by comparing its efficiency with other firms in a market structure. At the most, structure-conduct-performance paradigm provides a forum to develop preventive measures to modify behavior or performance detrimental to public interest. Otherwise, in the investigation of interaction of various variables, regulation has no place.