Submitted to the Foculty of Groduqte Studies ond Reseorch in portiol ...

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theory; or it$ welfqre economics bronch.
It hos been customory in industriol orgonizotion to, fooX
of the morket from the viewpoint of structure, conduct, ond
i
p€rformonc€. This hos proved convenient, ond the cpprooch is
odopted here. An -ottempt to briefry dêfine these terms fprlows.
Terminology, - Mqrket structure refers to the orgonizotionol
chorocte ri st i c.s of o morket, determining the relotion ofr sellirs
to eqch other ond to the buyers. Its most solient osp.ct' is
.l
the degree of seller concentrotion, described by the nurnber ond
size distribution of sellers in the morket. It tells us, e. 9,,
h,hether the number of sellers is one, few, or mony. Thus it
serves os q bosis for c primory distinctíon omong industries,
which in its simptest form is threefold: (i) Atomistic industries,
in which mony sellers ore in competition, (ii) otigopotistic
industries, in which few Lorge sellers compete, ond, finolly,
(iii) monopolized industries, in which o single sellerl supplies
the \^rhole morket. There ore olso structurol chorocteristics
qs.the degree of product differentiotion, the condition of entry,
cost rotios, verticql integrotion, ond cong lome rotêne ss.
lvíorket conduct relqtes to behoviour potterns thot €ntrê-
preneurs follow in odjusting to the morkets in which thËy setl.
cies of fi rms, ian.i"
product desl,gn, odvertising strotegies, express or tqcit
collusion ogreements, predotory or exclusionory toctics,I. etc.
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