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9 Cards in this Set
- Front
- Back
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Austrian School
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A school of thought originally identified with the University of
Vienna. Views competition as a dynamic process, driven by the acquisition of new information. Tends to be hostile to government intervention. |
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Chicago School
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A school of thought originally identified with the University of
Chicago. Tends to view high profitability as a reward for superior efficiency, rather than symptomatic of abuses of market power. Argues government intervention in the form of active competition policy tends to lead to less rather than more competition. |
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Collusion Hypothesis
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The view that a positive association between concentration and
profitability constitutes evidence of the abuse of market power in an effort to enhance profitability. |
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Distinctive Capabilities
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A firm's unique or specialized competences.
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Efficiency Hypothesis
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The view that a positive association between concentration and profitability derives from a tendency for the most efficient firms to dominate their own industries.
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Five Forces Model
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A model used by Porter (1980) to describe competition. The five forces are: the extent and intensity of direct competition; the threat of entrants; the threat of substitute products and services; the power of buyers; and the power of suppliers.
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New Industrial Organization
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Theories of industrial organization which focus primarily on strategy and conduct at firm level, rather than on market or industry structure.
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Structure-Conduct-Performance
Paradigm |
A methodological approach for research in industrial organization, in which the structural characteristics of industries are assumed to
influence or dictate the conduct and performance of the industry's member firms. More sophisticated models allow for feedback effects, whereby conduct and performance variables help shape the industry's future structure. |
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Value Chain
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A technique devised to disaggregate a firm into its strategically relevant activities, in order to appraise each activity's contribution to the firm's performance.
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