Value, competiton, and concentration

Abstract

This article discusses Hilferding’s theory of competition and argues that it resembles
the neoclassical theory of perfect competition, The existence of differential profit
rates is interpreted by Hilferding as representing an expression of the process of general
monopolization in the economy, the law of value being therefore gradually weakened. Yet, in
the light of Marx’s conception, the phenomenon of differential rates of profit among capitals
in one and the same industry, as well as the differential rates of profit in different industries
are necessary phenomena of competition. The conclusion may thus be reached that monopoly
is part of the concept of capitalist competition and that the law of value should be maintained
as an indispensable theoretical foundation for the study of the workings of capitalism.

JEL Classification: B24;B26; D42.