The nature of the bonus function under market socialism and the implications of such functions for a comparison of income distributions under socialist and capitalist economic systems are examined. It is shown that when efficiency is required, when enterprise shutdown rules are taken into account, and when information is decentralized, the bonus will be equal to the profits of the enterprise. Lange's social dividend must be zero.
Incentives and Income Under Market SocialismPeter Murrell ,
3( 8 )
Journal of Comparative Economics