On Mar 25, 2012, at 7:26 PM, Mike Ballard wrote:
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> Value is determined by the socially necessary/average labour time.
> Price usually fluctuates around value...
As I pointed out earlier, with regard to prices this is totally not the case. In a perfectly competitive market in long-term equilibrium prices fluctuate around long-term average costs ("prices of production.") In the currently real (oligopolistic) world prices are determined by the relative strength of the monopolistically competitive groups struggling to extract, each for itself, the maximum share of monopoly rents. Advertising is one among many weapons in that struggle.
Shane Mage
"All things are an equal exchange for fire and fire for all things, as goods are for gold and gold for goods."
Herakleitos of Ephesos, fr, 90