Quality Aspects of Economic Transition: The Effect of Inferior Quality on the Market
AbstractThe paper explores the quality problem as a major challenge before transitional economies. It uses Akerlof’s model of misrepresented quality in an attempt to study it as the reason for market failure in the new democracies. The determinants of poor quality in the region of Eastern Europe are presented and the role of opportunism as the major cause of deceptive quality is revealed in the context of the staggering transaction costs East European countries are faced with. Reputation and the costs of dishonesty for East European producers are discussed.
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Bibliographic InfoArticle provided by Bulgarian Academy of Sciences - Economic Research Institute in its journal Economic Studies.
Volume (Year): (2004)
Issue (Month): 2 ()
Find related papers by JEL classification:
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Tamara Todorova, 2011. "Adverse Effects of Transaction Costs in East European Economies," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 2(1).
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