The fundamental problem of command: plan and compliance in a partially centralised economy. From: Comparative Economic Studies | Date: June 1, 2005| Author: Harrison, Mark | COPYRIGHT 2005 Association for Comparative Economic Studies. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

When a principal gives an order to an agent and advances resources for its implementation, the temptations for the agent to shirk or steal from the principal rather than comply constitute the fundamental problem of command. Historically, partially centralised command economies enforced compliance in various ways, assisted by nesting the fundamental problem of exchange within that of command. The Soviet economy provides some relevant data. The Soviet command system combined several enforceme...

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