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VALUE AND COMPETITION IN A SPATIAL CONTEXT: A MARXIAN MODEL
Author(s) -
Liossatos Panagis
Publication year - 1988
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1988.tb01110.x
Subject(s) - economics , profitability index , microeconomics , profit (economics) , rate of profit , competition (biology) , profit rate , context (archaeology) , production (economics) , prices of production , spatial contextual awareness , commodity , neoclassical economics , market economy , computer science , ecology , biology , paleontology , finance , operating system
This paper develops a simple spatial Marxian system of production price in which transportation is produced like any other commodity. Marx's principles of the labour theory of value arc formulated as macroeconomic constraints on steady‐state prices. Competition brings about the establishment of a uniform price intrasectorally and the equalisation of profit rates intersect orally. Contrary to conventional premises, competition also brings forth a stochastic equilibrium in which individual commodities are produced by a multiplicity of local techniques of unequal profitability. It is in this context that Marx's concepts of individual and average prices of production are given a spatial interpretation.