The New Soviet Incentive Model: Comment
Volume: Volume 8, No. 2
Issue: Autumn 1977
Pages: pp. 591-600
Authors: Vinson Snowberger
Title: The New Soviet Incentive Model: Comment
Abstract: This paper develops further the analysis begun by Weitzman and others of the new Soviet incentive system. Elaborating on the single-period model, it investigates the firm's reaction to uncertainty in the case of risk aversion, generalizes the treatment of the expenditure of effort, and introduces the possibility of multiple objectives. Turning to a two-period analysis, it begins the difficult study of the dynamic interaction between the planners and the firm in terms of the former's adjustment of future tentative targets according to past performance and the latter's reaction to this process.
JEL Classification
Microeconomics Theory of Production (0223)
Socialist and Communist Economic Systems (0520)