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

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  • Graham White

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.

Suggested Citation

  • Graham White, 2024. "Competition and demand-led growth: linking different parts of the Sraffian-inspired research program," Working Papers 2024-21, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2024-21
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    References listed on IDEAS

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    5. Graham White, 2015. "Competition In The Classical Sense And The Sraffa-Keynes Synthesis: Intersecting Research Themes Inspired By The Work Of Sraffa," Cahiers d’économie politique / Papers in Political Economy, L'Harmattan, issue 69, pages 131-158.
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    Keywords

    Cross-dual dynamics; target return; demand-led growth;
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