Restructuring firms in a transition economy produces a sort of network externality, in that the profitability of restructuring depends on the number of firms that already adopted this strategy. We investigate under what conditions a "critical mass" exists, i.e., a situation in which such...

In this paper we argue that restructuring firms in a transition economy produces an effect similar to a network externality, in that the profitability of restructuring depends on the number of firms that have already decided to adopt this strategy. While other papers assume the existence of a...