[OPE-L:7135] [OPE-L:637] Re: Relational properties of exchange with money [OPE-L

Ajit Sinha (sinha@cdedse.ernet.in)
09 Mar 99 16:47:38 IST (+0530)

Alan wrote:
> Mainly a response to Brendan but also dealing with one point of
> Ajit's ("do
> you have a theory of price"?)
> the following
> three propositions about a value relation are equivalent:
> (i) value is a linear/distributive function of use-value;
> (ii)value is conserved in exchange
> (iii)any relative price may be represented as a ratio between the
> values of
> the baskets on each side of an exchange-relation between baskets
> that can be
> found in the same exchange-class. In particular we may in this
> way define
> 'unit prices' in value terms for any given use-value, or basket
> of use-values
> of constant proportions. We may thus 'explain' price in terms of
> value.
> In consequence I think any function of use-value satisfying the
> above axiom
> will yield the following:
> (i) u is conserved in any complete system of exchange relations,
> that is, any
> set of exchanges in which the basket of use-values is the same on
> both sides
> of the equation;
> (ii)we may establish a correspondence between sets of relative
> prices and
> transfers of u; any vector of prices p induces a set of transfers
> of value
> between agents or, dually, between stocks of use-values, such
> that these
> transfers sum to zerp.
> In brief reply to Ajit, then, a 'theory' of prices is the above
> correspondence; it is an explanation for prices in terms of a
> redistribution
> of a conserved magnitude, value.
How is your "value" determined? and what is the unit of its
measure? Cheers, ajit sinha