Structure, Conduct and Performance Paradigm in Assessing Travel Agency Performances

Abstract

The purpose of this paper is to present and exemplify traditional and neoclassical approaches to market structure and tourism firm performance analysis. The paper tackles some of the industrial economic thinking trends which were meant to fill the gaps left by the traditional approaches. Two approaches stand out from among the industrial economic trends: SCP paradigm and game theory. The results show that the strategy tourism operators prefer is to practice high prices; however there is no certainty that the competitors would adhere to such an idea at the beginning or during the season.