IDEAS home Printed from https://ideas.repec.org/a/mul/jb33yl/doi10.1428-21646y2006i1p41-50.html
   My bibliography  Save this article

Does the Market Adopt Sraffa's "Self -replacing" Prices?

Author

Listed:
  • Arrigo Opocher

Abstract

Piero Sraffa's model of production for subsistence concerns the existence of unique exchange ratios which allow production to be repeated over time. In this paper we investigate the question whether a competitive market adopts these exchange ratios - a question Sraffa alluded to, but did not answer in his book. To this end we restrict our attention to the simple two-commodity case and "translate" Sraffa's model in terms of the Edgeworth box diagram. When outputs are given and only one method of production is known in each industry, it is very easy to show that nothing prevents the market from adopting the "self-replacing" relative price. The introduction of a variety of methods makes things more complex and requires, special cases aside, to consider the outputs as variables to be determined within the model. It is shown that, with constant returns to scale and smooth isoquants in the two industries, the market does indeed adopt Sraffa's self-replacing price.

Suggested Citation

  • Arrigo Opocher, 2006. "Does the Market Adopt Sraffa's "Self -replacing" Prices?," Economia politica, Società editrice il Mulino, issue 1, pages 41-50.
    • Handle: RePEc:mul:jb33yl:doi:10.1428/21646:y:2006:i:1:p:41-50
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1428/21646
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.rivisteweb.it/doi/10.1428/21646
    Download Restriction: no
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arrigo Opocher, 2008. "The Two‐Sector Von Thünen Original Marginal Productivity Model Of Capital; And Beyond: Comment," Metroeconomica, Wiley Blackwell, vol. 59(2), pages 105-109, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:jb33yl:doi:10.1428/21646:y:2006:i:1:p:41-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rivisteweb.it/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.