Value and price: a critical analysis of the "transformation problem”

Abstract

Von Bortkiewicz commences his analysis of Marx with an assertion, viz., that there is a quantitative disagreement between value and price of production, or granting an approximate exactness, a quantitative disagreement between value and price constituting a specific characteristic of Marx:

"The quantitative incongruity of value and price (more precisely: price of production) forms a specific characteristic of Marx's theory of the capitalist economy." (von Bortkiewicz, 1952, p. 5)

Far from proceeding next to qualify or substantiate his claims on Marx, von Bortkiewicz presents us instead with a theory of value. This, he does

"in order to avoid misunderstandings due to the multiple significance of the concept of value." (von Bortkiewicz, 1952, p.6) At first glance, he has a sui generis way of proceeding. He pleads to avoid "misunderstandings" by means of providing several understandings. The "multiple significance of the concept of value" looks like a contradiction in terms.

Von Bortkiewicz's observations on value are most helpful, as he would explain to us more precisely how value can have not one but many meanings, multiple meanings according to him. To his explanations, we proceed next.