If the food doesn't come-vertical coordination problems in the CIS food system: Some perils of privatization

Bilateral monopoly situations where few sellers confront few buyers are an important legacy of the command system in the countries of the Commonwealth of Independent States. Both suppliers and buyers typically attempt to manipulate prices by distorting the market. The resulting quantity reductions at each stage of food production, processing, and distribution are causing severe ongoing market inefficiencies and may lead to catastrophic short-term disruptions in localized markets. Consequently, reform efforts should be redirected toward the development of both a business communications infrastructure that will foster competition, and a legal apparatus that will be capable of enforcing efficient contracts. © 1995 by John Wiley & Sons, Inc.