Competition In The Classical Sense And The Sraffa-Keynes Synthesis: Intersecting Research Themes Inspired By The Work Of Sraffa

The paper explores the intersection of three lines of enquiry all inspired by the work of Sraffa, although not explored by Sraffa himself in his Production of Commodities by Means of Commodities. The first concerns the explanation of the quantities taken as given in the Sraffa system and the related issue of fusing together a Classical-Sraffian-inspired explanation of relative prices and distribution and a long-run demand-led explanation of aggregate activity. The second relates to the dynamic processes which may be supposed to limit profit rate differentials and hence render stable equilibria characterized by a uniform profit rate. The third and relatively unexplored line of enquiry relates to the broad field of competition and the relevance for a Sraffian approach of traditional concepts such as “firm,” “industry” or of firm/ market structures in the explanation of the rate of profit and relative prices. Following discussion of each of these three areas, the paper constructs a very simple outline of a model of gravitation as a means of exploring their interconnections.