Re: [OPE-L] questions on the interpretation of labour values

From: Francisco Paulo Cipolla (cipolla@UFPR.BR)
Date: Wed Feb 28 2007 - 11:52:55 EST

I may have used the wrong word (pivot) but I still stand by the idea I expressed
in my previous message. You call market prices accidental. That may also be a
misnomer for they are the only actual prices that exist and it is on the basis
of those price signals that both market values and prices of production change
according to how supply expands/contracts in response to discrepancies between
market values and market prices.

Pen-L Fred Moseley wrote:

> Quoting Francisco Paulo Cipolla <cipolla@UFPR.BR>:
> > Hi Fred, you seem not to give market price its due importance. My
> > reading is that
> > given social demand for a product and given total supply within a
> > sector market
> > prices are the result of the discrepancy between supply and demand.
> > That is if
> > demand is greater than supply market prices will stand above market values
> > understood as average values within an industry. If on the other hand
> > this market
> > price yields a rate of profit above average for the most competitive
> > techniques
> > then supply expands through these techniques and market prices are
> > brought down.
> > How can Max have deemphasized market prices given that they are the
> > pivot of the
> > whole process?
> Hi Paolo,
> I don't understand.  It seems to me that what you say is that the
> average market prices (i.e. prices of production) are the pivot around
> which market prices fluctuate.  What do you say that the market prices
> are the pivot.
> Market prices are accidental, temporary prices, which depend on supply
> and demand.  Prices of production are determined by systematic forces.
> Comradely,
> Fred
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