3391 shaares
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Most sectors in capitalist economies have a small group of ‘oligopolies’ and a large group of small companies. Depending on the various weights of these two groups, prices will be driven by ‘regulating capitals’ (see Shaikh Chapter 7), which are usually in fierce competition with each other, within countries and internationally. Monopoly profits are not the cause of movements in overall inflation rates; only in some sectors where ‘natural’ monopolies exist and even there, competition and technical change can undermine monopoly control of prices over time.