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In which important way/s does the Structure-Conduct-Performance approach industrial organization differ from the Chicago School approach: Economics Assignment, UOC, UK
| University | University Of Cambridge (UOC) |
| Subject | Economics |
Question 1
- In which important way/s does the Structure-Conduct-Performance approach industrial organization differ from the Chicago School approach?
- Explain the distinction between the 3 degrees of price discrimination. In the case of a monopolist, why might a policy of first-degree price discrimination produce an outcome that is preferred on social welfare criteria to a policy of setting a uniform price in order to maximize profit? Your answer should include diagram/s as appropriate.
- What factors should be taken into account by the competition authorities in determining whether a particular market is under monopoly control?
Question 2
- What is the distinction between vertical and horizontal product differentiation? Can a free market be expected to deliver a socially optimal level of product differentiation?
- How does the introduction of product differentiation into the Bertrand model impact market price? Does this change in price necessarily mean that social welfare is changed because of product differentiation in a Bertrand market?
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