Applying the structure‐conduct‐performance framework in the media industry analysis

Wayne Fu
2003 JMM - The International Journal on Media Management  
The Structure-Conduct-Performance (S-C-P) paradigm has become a common approach to analyzing communications industries and markets. This framework, drawn from the well-established Industrial Organization (IO) economics, examines the operation of a market by discerning the three elements of the market -structure, conduct, and performance -and evaluating their interrelations. This IO perspective is well received among both media economics researchers and communication scholars who investigate the
more » ... who investigate the generic but overarching question of how the media operate in a free marketplace to serve the public. This paradigm presents a logical, systematic guideline for formulating theoretical models and crafting empirical examinations of the operation of a media market. Its merit also lies in normative implications it generates that can benefit the making of policies and regulations on media industries. A number of articles have illuminated the S-C-P paradigm as well as commenting on its media applications. These include Abstract This article reviews the application of the Industrial Organization (IO) framework of Structure-Conduct-Performance (S-C-P) in media market research. The constructs and premises of this economic model are restated, and the orthodox economic notions of market performance and the logic that underlies the model are clarified. Alongside these elucidations, this article discusses common conceptualizations and interpretations found in media market studies. Media issues such as content diversity and media concentration, which are often studied through the S-C-P approach, are also reexamined. These deliberations are intended to contribute toward a more consistent framework for the study of media industries and markets.
doi:10.1080/14241270309390043 fatcat:u26v53sggjcsrg453dx7qdcm4a