[OPE-L:7428] [OPE-L:961] Re: Re: value and price

Ajit Sinha (sinha@cdedse.ernet.in)
10 May 99 12:14:53 IST (+0530)

Jerry wrote:
> It's not a problem for me since I don't accept the "law of one
> price".
So you think at one time in one market different units of the same
commodity have different prices? And how do you theorize this?
> I had written:
> > As far as my position is
> > concerned, it creates absolutely no problem. Price is defined
> only
> > for a point in time. Whether the commodity is bought to be used
> as
> > input or whatever is not even the concern for the definition of
> > price. In a well defined "market" one price prevails for a
> > commodity at a given point of time.
Jerry comments:
> Since you are making an empirical suggestion, what is the
> empirical
> evidence that you are referring to? Moreover, since you evidently
> include
> this to mean contemporary markets, perhaps we should have a
> discussion of
> price determination in oligopolistic markets (the most common
> "defined"
> market type in contemporary capitalist economies).
You and I stand on opposite poles, Jerry. I'm for clearifying
things, and you are for muddling things. I thought that we were
discussing the theory of determining all prices at a given point in
time. This is not a typically microeconomics problem. Now you
introduce oligopoly market, which is typically a partial
equilibrium micro economics problem. As I have said before, for the
whole system, the rate of profit is embedded in the system.
Oligopoly or Monopoly in certain markets cannot change that.
Cheers, ajit sinha