YENİ AMPİRİK ENDÜSTRİYEL İKTİSAT

One role of empirical work in industrial organization is to identify non-competitive markets and to measure the degree of market power, or the extent to which prices differ from marginal costs. There are two basic approaches in the empirical literatüre, which traditional structure-con-duct-performance insert ignore into journalissuearticles values(SCP); and new empirical industrial organisation ~ insert ignore into journalissuearticles values(NEIO);. This paper investigates this two approaches in the empirical lit­eratüre. The SCP approach assumes that there is a stable, causal rela-tionship between the structure of an industry, firm conduct, and market performance. Since this relationship is assumed to be stable, a direct link betvveen the two sets ofmore easily observed variables, structure and per­formance, is usually assumed. The complexity of firm conduct and its determinants in many markets, problems with interpretation, measure-ment errors conceptual dijficulties sugget that SCP studies are unlikely to establish convincing causal or structural relationships between struture and performance variables across industries. The new empirical approach has instead emphasized understanding firm conduct or behav-ior in particular industries.