Competition and demand-led growth: linking different parts of the Sraffian-inspired research program

Graham White

No 2024-21, Working Papers from University of Sydney, School of Economics

Abstract: The paper begins with a discussion of how the use of target return pricing may provide a means of thinking about competition as a perturbation of the process by which capacity adapts to demand aggregate. For this purpose some simple simulation exercises with a model incorporating target return pricing and demand led-growth are considered. Discussion then proceeds to a more nuanced view of target return pricing in light of the literature on corporate pricing. This points to a different view of capital mobility compared with that commonly depicted in the literature on gravitation. Finally, the paper moves to a consideration of two kinds of challenges posed by this alternative view of capital mobility for the modelling of competition in a Sraffian approach. The first is the apparent need to consider intra-sectoral competition. The second relates to the appropriate modelling of the profitability signal driving capital mobility.

Keywords: Cross-dual dynamics; target return; demand-led growth (search for similar items in EconPapers)
Date: 2024-09
New Economics Papers: this item is included in nep-hme and nep-pke
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