The Library
Quality, experience, and monopoly : the Soviet market for weapons under Stalin
Tools
Markevich, Andreĭ, 1976- and Harrison, Mark, 1949-. (2005) Quality, experience, and monopoly : the Soviet market for weapons under Stalin. Economic History Review, Vol.59 (No.1). pp. 113-142. ISSN 0013-0117
|
PDF
WRAP_Harrison_7470248-161008-ehr06postprint.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader Download (344Kb) |
Official URL: http://dx.doi.org/10.1111/j.1468-0289.2005.00334.x
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.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions D History General and Old World > DK Russia. Soviet Union. Former Soviet Republics |
| Divisions: | Faculty of Social Sciences > Economics |
| Library of Congress Subject Headings (LCSH): | Weapons industry -- Soviet Union, Monopolies -- Soviet Union, Soviet Union -- Economc policy -- 20th century |
| Journal or Publication Title: | Economic History Review |
| Publisher: | Blackwell |
| ISSN: | 0013-0117 |
| Date: | 28 February 2005 |
| Volume: | Vol.59 |
| Number: | No.1 |
| Page Range: | pp. 113-142 |
| Identification Number: | 10.1111/j.1468-0289.2005.00334.x |
| Status: | Peer Reviewed |
| Access rights to Published version: | Open Access |
| References: | Archives RGAE: Russian State Economic Archive (Moscow). RGVA: Russian State Military Archive (Moscow). GARF: State Archive of the Russian Federation (Moscow). Hoover/RGANI: ‘Archives of the Former Soviet State and Communist Party’ from the Russian State Archive of Recent History (Moscow) at the Hoover Institution on War, Revolution, and Peace (Stanford, CA). Publications Agursky, M., ‘The Research Institute of Machine Building Technology’ (Hebrew University of Jerusalem, Soviet Institution Series no. 8, 1976). Agursky, M., and H. Adomeit., ‘The Soviet Military Industrial Complex and its Internal Mechanism’ (Queen’s University, Centre for International Relations, National Security Series no. 1/78, 1978). Alchian, A.A., and H. Demsetz, ‘Production, Information, Costs, and Economic Organizations’, American Economic Review, 62:5 (1972), pp. 777-795. Alexander, A.J. Decision-Making in Soviet Weapons Procurement (International Institute for Strategic Studies, Adelphi Paper no. 147-8, 1978). Almquist, P., Red Forge: Soviet Military Industry Since 1965 (New York, 1990). Berliner, J.S., Factory and Manager in the USSR (Cambridge, MA, 1957). Birman, I., ‘From the Achieved Level’, Soviet Studies, 30:2 (1978), pp. 153- 172. Crocker, K.J., ‘Vertical Integration and the Strategic Use of Private Information’, Bell Journal of Economics, 14:1 (1983), pp. 236-248. Davies, R.W., The Industrialisation of Soviet Russia, vol. 3: The Soviet Economy in Turmoil, 1929-1930 (Basingstoke, 1989); vol. 4: Crisis and Progress in the Soviet Economy, 1931-1933 (Basingstoke, 1996). Davies, R.W., and M. Harrison, ‘The Soviet Military-Economic Effort under the Second Five-Year Plan (1933-1937)’, Europe-Asia Studies, 49:3 (1997), pp. 369-406. Devons, E., Planning in Practice: Essays in Aircraft Planning in War-Time (Cambridge, 1950) Djankov, S., E. Glaeser, R. la Porta, F. Lopez-de-Silanes, and A. Shleifer, ‘The New Comparative Economics’, Journal of Comparative Economics, 31:4 (2003), pp. 595-619. Eloranta, J., ‘The Demand for External Security by Domestic Choices: Military Spending as an Impure Public Good Among Eleven European States, 1920-1938’ (European University Institute, PhD Dissertation, 2002). Eloranta, J., ‘Rent Seeking and Collusion in the Military Allocation Decisions of Finland, Sweden, and the UK, 1920-1938’ (University of Warwick, Department of Economics, Working Paper, 2004). Ermolov, A., ‘Narodnyi komissariat tankovoi promyshlennosti SSSR v gody Velikoi Otechestvennoi voiny. Struktura i deiatel´nost´. 1941-1945 gg.’ (Moscow State University, Candidate of Historical Sciences Dissertation, 2004) Granick, D., Management of the Industrial Firm in the USSR (New York, 1954). Gregory, P.R., Restructuring the Soviet Economic Bureaucracy (Cambridge, 1990. Gregory, P.R., ‘Soviet Defence Puzzles: Archives, Strategy, and Underfulfillment’, Europe-Asia Studies, 55:6 (2003), pp. 923-38. Grossman, G., ‘Notes on the Illegal Private Economy and Corruption’, in Soviet Economy in a Time of Change, vol. 1 (U.S. Congress Joint Economic Committee, Washington, DC, 1979), pp. 834-855. Harrison, M., ‘The Political Economy of a Soviet Military R&D Failure: Steam Power for Aviation, 1932 to 1939’, Journal of Economic History 63(1) (2003), pp. 178-212. Harrison, M., ‘Soviet Industry and the Red Army Under Stalin: A Military- Industrial Complex?’ Les Cahiers du Monde russe, 44:2-3 (2003), pp. 323- 342. Harrison, M., ‘A Soviet Quasi-Market for Inventions: Jet Propulsion, 1932 to 1946’, forthcoming in Research in Economic History, 23 (2005). Harrison, M., and A.M. Markevich, ‘Hierarchies and Markets: The Institutional Setting of the Soviet Defense Industry, 1929 to 1953’ (University of Warwick, Department of Economics, PERSA Working Paper no. 39, 2005: URL: http://www.warwick.ac.uk/go/persa). Harrison, M., and N. Simonov, ‘Voenpriemka: Prices, Costs, and Quality Assurance in Interwar Defence Industry’, in J. Barber and M. Harrison, eds, The Soviet Defence-Industry Complex From Stalin to Khrushchev (Basingstoke, 2000), pp. 223-245. Holloway, D., ‘Innovation in the Defence Sector’, in R. Amann and J.M. Cooper, eds., Industrial Innovation in the Soviet Union (New Haven, CT, 1982), pp. 276-367. Keren, M., ‘The Ministry, Plan Changes, and the Ratchet Effect in Planning’, Journal of Comparative Economics, 6:4 (1982), pp. 327-342. Kornai, J., The Economics of Shortage, 2 vols (Amsterdam, 1980). Livshin, A.Ia., and I.B. Orlov, eds., Pis´ma vo vlast´. 1917-1927. Zaiavleniia, zhaloby, donosy, pis´ma v gosudarstvennye struktury i bol´shevistkim vozhdiam (Moscow, 1998). Livshin, A.Ia., I.B. Orlov, and O.V. Khlevniuk, eds., Pis´ma vo vlast´. 1928- 1939. Zaiavleniia, zhaloby, donosy, pis´ma v gosudarstvennye struktury i sovetskim vozhdiam (Moscow, 2002). National Audit Office, Ministry of Defence Exercise Saif Sareea II (HC1097 Session 2001-2002, Report by the Comptroller and Auditor General, London, 2002). Nelson, P., ‘Information and Consumer Behavior’, Journal of Political Economy, 78:2 (1970), pp. 311-329. Perry, M.K., ‘Vertical Integration: Determinants and Effects’, in R. Schmalensee and R.D. Willig, eds. Handbook of Industrial Organization, vol. 1 (Amsterdam, 1989), pp. 103-255. Rogachevskaia, L.S., Sotsialisticheskaia sorevnovanie v SSSR. Istoricheskie ocherki. 1917-1970 gg. (Moscow, 1977). Samuelson, L., Plans for Stalin’s War Machine: Tukhachevskii and Military- Economic Planning, 1925-41 (London and Basingstoke, 2000). Shleifer, A., ‘A Theory of Yardstick Competition’, Rand Journal of Economics, 16:3 (1985), pp. 319-327. Sokolov, A.K., ‘Before Stalinism: the Defense Industry of Soviet Russia in the 1920s’, forthcoming in Comparative Economic Studies (2005). Sokolov, A.K., ed., Golos naroda. Pis´ma i otkliki riadovykh sovetskikh grazhdan o sobytiiakh 1918-1932 gg. (Moscow, 1998). Sokolov, A.K., ed., Obshchestvo i vlast´: 1930-e gody. Povestvovanie v dokumentakh (Moscow. 1998). Sokolov, B.V., ‘O sootnoshenii poter´ v liudiakh i voennoi tekhniki na Sovetsko-Germanskom fronte v khode Velikoi Otechestvennoi voiny’. Voprosy istorii (1988), no. 9, pp. 116-127. Solomon, P.H., Soviet Criminal Justice Under Stalin (Cambridge, 1997). Weitzman, M.L., ‘The “Ratchet Principle” and Performance Incentives’, Bell Journal of Economics, 11 (1980), pp. 302-308. |
| URI: | http://wrap.warwick.ac.uk/id/eprint/216 |
Actions (login required)
![]() |
View Item |
Tools
Tools

