Re: [OPE-L] price of production/supply price/value

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Wed Feb 01 2006 - 11:03:02 EST

Hi Paul

You write:

"I was making very parsimonious assumptions in my post:
a) Assume that the selling prices of firms are a random function of the
value of their products."

You seem to actually be specifying this function such that prices are
proportional to values with a random disturbance (i.e. prices fluctuate
around values with zero mean fluctuation). If so then you are assuming
the famous aggregate equalities hold (with random disturbance). But
isn't this assuming just what is at issue?

All that one is assuming here is that there is some MELT that equates
total values to total prices. But this is a necessity in any case
the two are in principle in different units.

One could similarly set total actual prices to total of theoretical
 prices of production and see what the dispersion of prices of
around the mean would be.

What I am concerned with is the constraints that reproduction sets
on the dispersion of the price/value ratio as a random variable.

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