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School of Economics and Finance

No. 813: Value, Price and Exploitation: The Logic of the Transformation Problem

Simon Mohun , Queen Mary University of London
Roberto Veneziani , Queen Mary University of London

January 1, 2017

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This paper tries to clarify the logical structure of the relationship between labour values and prices from an axiomatic perspective. The famous 'transformation problem' is interpreted as an impossibility result for a specific interpretation of value theory based on specific assumptions and definitions. A comprehensive review of recent literature is provided, which shows that there are various theoretically relevant and logically consistent alternative interpretations based on different assumptions and definitions.

J.E.L classification codes: B51

Keywords:Value, Prices, Transformation problem