From Anonymity to Identity: Network Transformation in Economies and Industries in Transition from Plan to Market

  • Martin Johanson
  • Jan Johanson
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Abstract

Perhaps the most striking institutional change over the last 30 years is the transition from some kind of state-governed and planned economy to a more open economic system governed by the market. This development has occurred or is currently occurring in countries that are often labelled transition economies or emerging markets. Included among these countries are China, India and Russia, as well as most other countries in the ‘communist bloc’ in the former Soviet Union, as well as Central and Eastern Europe. Within the market economies of Europe, similar, although less dramatic, changes in the mix between planned and market exchange have been implemented. Industrial sectors, for instance telecom, air transport and energy, have been transformed from plan governance to open market governance through an institutional deregulation. The plans and the associated authorities in planned economies are being abolished, prices are being liberalised and the countries, or the industrial sectors, are moving towards increasingly open market economies. The relative merits and problems of the two modes of coordination of economic life have been analysed and discussed in a number of studies. Coase (1937), Hayek (1945) and Williamson (1975) are examples of scholars who have analysed the plan (hierarchy) versus the market mechanism of economic coordination.

Keywords

Corporate Governance Static Network Institutional Change Plan Economy Stable Network 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© The Editor(s) (if applicable) and The Author(s) 2016

Authors and Affiliations

  • Martin Johanson
    • 1
  • Jan Johanson
    • 2
  1. 1.Mid Sweden UniversitySundsvallSweden
  2. 2.Uppsala UniversityUppsalaSweden

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