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Quality, experience, and monopoly: the Soviet market for weapons under Stalin -super-1

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Author Info
ANDREI MARKEVICH
MARK HARRISON

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Abstract

Monopoly is a particular problem in markets where experience goods are traded, since the consumer cannot respond to bad experiences by switching repeat purchases to another supplier. New evidence shows how the defence ministry as buyer in the Soviet market for military goods responded to this problem by investing in an evaluation of quality prior to purchase, by showing reluctance to buy, and by exploiting the available non-market means to influence the defence industry as supplier. The effectiveness of these stratagems was limited by the defence industry's counteractions and because the buyer had no choice but to come to a compromise with the supplier. Copyright Economic History Society 2005.

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Article provided by Economic History Society in its journal The Economic History Review.

Volume (Year): 59 (2006)
Issue (Month): 1 (02)
Pages: 113-142
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Handle: RePEc:bla:ehsrev:v:59:y:2006:i:1:p:113-142

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  1. Harrison, Mark & Markevich, Andrei, 2007. "Quantity Versus Quality in the Soviet Market for Weapons," The Warwick Economics Research Paper Series (TWERPS) 822, University of Warwick, Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-22.


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