[OPE-L:2408] preferred subject

Michael Perelman (michael@ecst.csuchico.edu)
Wed, 29 May 1996 10:32:46 -0700

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As you might guess from my previous posts, my preferred future subject would
be a discussion of the nature of the process whereby competition forces
values to adjust over time. For example, a dominant firm, such as U.S. Steel
in the early 20th C. U.S., took almost half a century for is market
values to come into line with the underlying labor values. Means has showed
how, during the Depression in the U.S., the price declines were very sharp
in some industries and hardly noticeable in others.

I regard depressions as periods when this adjustment process is rapid. Thus,
I am convinced that studying how this ajustment process works will help
us to understand the nature of crises.

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu