The Political Determinants of Optimal Economic Transition: Evidence from the Russian Case

The transition from a single-party authoritarian regime to a democratic, market economy implies significant challenges due to the need to create new institutions in an environment that was previously hostile to them. While there is a vast theoretical literature on the transition experiences of most of the former socialist bloc, there is limited theoretical work that analyzes the case of the Soviet Union due to its unique political constraints. This work utilizes a game theory model where public preferences provide the causal mechanism for political and economic reform, thus addressing the gap in the relevant literature. Additionally, the role public preferences played in producing a economic and political outcomes is explored, as well as how this would have affected the newly independent Russia's political development.