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Resolution, Recovery and Survival: The Evolution of Payment Disputes in Post-Socialist Europe

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Author Info
William Pyle ()
Abstract

What determines the mechanism chosen to resolve a commercial dispute? To what degree does the aggrieved recover damages? And does the relationship survive in the aftermath? The answers to these questions affect expectations as to the costs of transacting and, thereby, the development of markets. But they have received almost no attention in the economic literature on the post-socialist transition. This article exploits a rich survey of small and medium-sized manufacturing enterprises in three post-socialist countries to explain behavioral responses to an inter-firm payment dispute. Particular attention is given to how the evolution of disputes is sensitive to both the geographic distance between trade partners and membership in a business association.

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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp761.pdf
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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number wp761.

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Date of creation: 01 Mar 2005
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Handle: RePEc:wdi:papers:2005-761

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Related research
Keywords: commercial dispute; business association; transition;

Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
P37 - Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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This page was last updated on 2009-12-15.

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