Incentives and Income Under Market Socialism
Peter Murrell ,
3
( 8 )
Journal of Comparative Economics
261-276
September
1984
Abstract

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.

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