Convergence to natural prices in simple production
This paper describes a nonlinear dynamic model of the convergence of market prices to natural prices in a multisector 'simple production' economy under conditions of a constant technique and composition of demand. Prices and quantities adjust in real time according to the classical principle of cross-dual dynamics. The economy gravitates toward an asymptotically stable equilibrium in which natural prices are proportional to labor-values. To demonstrate an application of the model we reply to Mirowski's (1989) critique that Marx held a contradictory 'substance' and 'field' theory of value.
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Mar 2011|
|Contact details of provider:|| Postal: Walton Hall, Milton Keynes, MK7 6AA|
Web page: http://www.open.ac.uk/socialsciences/about-the-faculty/departments/economics/research/discussion-papers.php
More information through EDIRC