In the monograph the theory of monopolistic competition under uncertainty is developed. It is shown how the uncertainty influences the market imperfections, in particular, short-term mismatch of supply and demand.
Two decades after transitioning from a planned to a market economy and following a decade of buoyant growth, Russia’s economy experienced a considerable setback during the economic crisis. The downturn drew attention to the fragility of Russia’s economic development model, which continues to be based on exploiting natural resources rather than vibrant entrepreneurial industries. The questions inevitably arise: What are the measures necessary to put Russia on a more stable and sustainable growth path? What steps will enable the country to make better use of its many competitive advantages—its abundance of natural resources, the size of its market, and its well-educated workforce, as well as its favorable geographical location? This discussion appears particularly timely, as Russian policymakers increasingly recognize that economic reform is necessary and have recently put modernization of the economy at the top of their agenda. Produced in collaboration with Sberbank and Strategy Partners Group, this Report assesses the country’s overall performance in terms of competitiveness using the World Economic Forum’s Global Competitiveness Index and benchmarks Russia against key emerging and industrial economies across the globe. In addition, it analyzes Russia’s innovation system and suggests measures that would enable the country to make its institutional and policy environment more conducive to fostering commercial innovation. The analysis is complemented by profiles of the Russian Federation and 26 emerging and developed economies that provide for specific comparisons with Russia across over 100 variables contained in the Global Competitiveness Index.