Critical Mass Effect and Restructuring in the Transition Towards a Market Economy

摘要: Restructuring firms in a transition economy produces sort of network externality, that the profitability restructuring depends on number already adopted this strategy. We investigate under what conditions "critical mass" exists, i.e., situation which such externality is positive and spurs imitation, possibly leading to eventual transformation whole economy. find critical mass effect when main an increase value added (i.e., aggregate demand) rather than firm's ability compete against rival home firms. The case becomes typical one competition firms' efficiency.