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Abstract

The present work aimed to evaluate the adjustments occurred in the food sector of biscuit and pastry in Brazil, from 1995 to 2001, using the Structure-Conduct-Performance model of the Industrial Organization theory. The results demonstrated that the new competitive environment, started by the non-regulation in the sector and by the commercial openness, allowed tougher competition and restrained the market power of the major industries. Both segments had to adjust themselves to the demands of the consumer in the market by improving the quality of their products, furnishing a wider variety and reducing their costs. The whole process was led by the major industries, which invested in technology and productive capacity and, continually, increased their participation in the market. Therefore, as a result of these adjustments, there has been an improvement in the economic performance and a greater benefi t for society.

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