The behavioral maladjustment of the communist managerial elites (the case of the czech republic)

The scarcity of educated and experienced managers and the path dependency influence the corporate governance of the post-communist enterprises. Using the standard microeconomic tools, the paper investigates the possible similarities between the old "command economy management" and the behavior of managers under the conditions of infant capitalism. It concludes that the standard microanalysis, supplemented with assumptions representing the management behavior under communism, may offer a viable theoretical explanation of management decision making as seen in the Czech Republic.