ABSTRACT

This chapter outlines some models of the Soviet enterprise developed by western authors. Most of these models are very simple, some of them even unrealistic compared to actual Soviet theory and practice. They serve a purpose however, in highlighting some aspects of Soviet enterprise behaviour, including a crude supply function, and thus set the scene which contains two models. The first is a multi-product, multi-input model designed to illustrate some of the assortment plan problems facing Soviet planners and also to introduce certain points concerning input utilisation and the Gossnab supply plan. The second model is a simpler one involving one good only and is designed to illustrate through a series of comparative static exercises the problem of planned target compatibility in the Soviet enterprise model. There is a common characteristic amongst the Soviet models surveyed: their direct and practical approach to enterprise behaviour.