Market Structure, Conduct and Performance Paradigm Reapplied in the Iranian Shoes an Leather Industries

Industrial economics is mostly based on the market structure, conduct and performance paradigm. This paper applies the mentioned paradigm on the Iranian shoes and leather industries. To this end, a system of equations including market share, advertising and profitability for the Iranian shoes and leather firms is estimated using 3SLS method in (2007). The results indicate that advertising and profitability have positive effect on market share. The impact of market share and profitability on advertising is also positive and meaningful. In spite of the positive effect of advertising on profitability, market share impact on the profitability is negative. Findings also show the positive impact of export on market share but meaningless impact of capital stocks on advertising.