The question for you to answer is this: Are there similar incentive problems in market-oriented societies (e.g., the United States, Canada, Japan)? To cut to the chase, the answer is "yes" - though, of course, the problems may not be so severe as those in former Eastern Bloc. For your answer, think of two examples where problems similar to those described in the articles do or do not occur in more market-oriented societies. The examples you choose are entirely up to you, but you should be sure to use economics to explain why similar problems do or do not occur in the specific examples you choose. Hint: You will probably want to consider the role residual claims. Depending on the examples you choose, you may want to consider high-powered incentives and low-powered incentives.
