Evaluating the Impacts of Conduct and Performance on the Extend of Competition in Iran’s Health-Cosmetic Industry

The main purpose of this paper is studying the effects of conduct and performance on the level of competition in cosmetic and hearth market. To meet this and ,using data for the period 1375-1389, a VAR model will employed.Generally the results show that there are a significant correlations among competition level, profitability and advertising as conduct and performance indicators in these industries.The results of the interaction of structural conduct and performance elements of market , using response functions in the industry show that due to a unit of momentum in profitability and advertising, level of market concentration will be increased although its intensity is reduced overtime.Also, the result of analysis of variance of both composition of concentration level in  the industry indicates that more than 50 percent of changes in competition or concentration level of market is because of active firms' structural and behavioral changes.