Marxian Reproduction Prices Versus Prices of Production: Probability and Convergence

Cockshott, W. P. (2016) Marxian Reproduction Prices Versus Prices of Production: Probability and Convergence. Working Paper. University of Glasgow. (Unpublished)

Abstract

I shall argue two main points. The first is that although Marx is conventionally taken to have formulated two different theories of price in the the three volumes of Capital, labour values in volume I and prices of production in volume III, there is actually a third theory, hidden inside the reproduction schemes of volume II. This theory is not explicit, but can be logically deduced from the constraints that he presents on simple reproduction. It is not a theory of individual prices, but a theory of relative sectoral prices. I will go on to argue that this theory of sectoral prices allows us to make probabilistic arguments about the relative likely-hood that either production prices or labour values will operate at the level of reproduction schemes. This paper provides a measure on the configuration space associated with Marxian prices of production and labour values. By use of random matrix techniques it shows that the solutions space associated with prices of production is similar to that associated with classical labour values. In the latter part of the paper, a sample of reproduction schemes is simulated over time, under assumptions of capital movement, to see whether such systems dynamically converge on prices of production. It is found that some converge, and some fail to converge.

• Item Type: Research Reports or Papers (Working Paper)
• Status: Unpublished
• Refereed: No
• Glasgow Author(s) Enlighten ID: Cockshott, Dr William
• Authors: Cockshott, W. P.
• Subjects: H Social Sciences > HB Economic Theory
• College/School: College of Science and Engineering > School of Computing Science
• Publisher: University of Glasgow
• Copyright Holders: Copyright © 2016 The Author
• Publisher Policy: Reproduced with permission of Author