A fundamental question in economics since the 1930s has been whether an administrative price system could simulate the results of perfect competition even without a true market for the means of production. The theoretical possibility of such a system has been known since the introduction of...

The paper analyses the investment behaviour of individual investors and privatization funds if the first wave of the voucher privatization using Czech data. It first summarizes privatization methods applied in the case of the Czech Republic and the rules of voucher privatization. Then a simple...

The natural experiment of voucher privatization in the Czech Republic is used to test whether prices that were adjusted in a limited number of discrete steps based primarily on the extent of excess demand or supply are able to fully reflect both public and private information. Early in the...

This study develops a dynamic model of bidding behavior to investigate the Czech voucher privatization process, which took place in two waves of bidding rounds, the first in 1992 and the second in 1994. It examines the voucher mechanism from the standpoint of investors and the pricing and...

The aim of this paper is to test the permanent income hypothesis on Czech voucher privatization. This form of privatization moved state assets to households and represented an unexpected windfall gain for participants of the privatization scheme. Whether the windfall was consumed or saved is...

We explore an overlooked aspect of the design of the Czech voucher privatization programme, namely, the consequences of allowing individuals to distribute their vouchers among the voucher privatization funds (VPFs). We develop and analyse a model of voucher privatization in which we study the...