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Disorganization

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.

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Length: 36 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:mit:worpap:96-30
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MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT), DEPARTMENT OF ECONOMICS, 50 MEMORIAL DRIVE CAMBRIDGE MASSACHUSETTS 02142 USA

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Web page: http://econ-www.mit.edu/

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  1. Castanheira, Micael, 2003. "Public Finance and the Optimal Speed of Transition," CEPR Discussion Papers 3797, C.E.P.R. Discussion Papers.
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  31. repec:aea:jeclit:v:43:y:2005:i:3:p:721-761 is not listed on IDEAS
  32. Jiahua Che, 2009. "A Dynamic Model of Privatization with Endogenous Post-Privatization Performance," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 563-596.
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