Consumption Cooperation in Rural Areas in the USSR: A Comment

Nancy Nimitz

Expert InsightsPublished 1966

A comment on the question of price discrimination against the peasant consumer in the USSR cooperatives. The rural price differential of 2.8 percent in the late 1950s, largely warranted by higher distribution costs, was eliminated between 1960 and 1966, resulting in savings to the rural consumer of about 700 million rubles a year. Membership in cooperatives is voluntary, but the member is entitled to special goods and services. About 20 percent of rural consumers who go to the town to buy in the better-stocked stores, also go to sell produce at higher collective farm prices. In general, discrimination does not exist in price but in the paltry assortment of basic goods available. 8 pp.

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Nimitz, Nancy, Consumption Cooperation in Rural Areas in the USSR: A Comment. Santa Monica, CA: RAND Corporation, 1967. https://www.rand.org/pubs/papers/P3674.html.
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