Under central planning, many firms relied on a single supplier for many of their inputs. Transition has led to decentralizaed bargaining between suppliers and buyers. Under incomplete contracts or asymmetric information, such bargaining can be inefficient, and the mechanisms that mitigate this problem in the West an only play a limited role in transition.
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Paper provided by Massachusetts Institute of Technology (MIT), Department of Economics in its series Working papers with number
96-30.
Length: 36 pages Date of creation: 1996 Date of revision: Handle: RePEc:mit:worpap:96-30
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Find related papers by JEL classification: L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
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