Cognitive Scaffold

Preparing your thinking workspace

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MENTAL MODEL · M6842

SCP

SCP
BusinessHigh supportEconomics
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

S (Structure): Market structure; C (Conduct): Enterprise behavior; P (Performance): Market performance. It reveals the causal chain where structure determines behavior, and behavior determines performance.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

The causal logic of industry analysis. Understand the rationality of enterprise behavior from market structure and predict competitive trends.

anchor

Anchor fast decisions

The Structure-Conduct-Performance (SCP) paradigm holds that market structure (concentration, entry barriers, product differentiation, etc.) exogenously determines enterprise behavior, which in turn determines market performance (efficiency, innovation, consumer welfare). Government can improve performance through structural interventions, which is the core logic of the Harvard School of industrial organization theory.

MINIMUM ACTION

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Source support: Explicit

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