Theories of Prices and Alternative Economic Paradigms

For some heterodox economics schools values are different from prices, while others regard such distinction as metaphysical. This difference of approach is related to different opinions on what function(s) the price system takes on in a capitalist economy. By discussing these different functions (allocative, distributive, and informative), this chapter shows that price and value theory holds analytical centrality in all economic paradigms, both heterodox and mainstream, to the point of defining contemporary heterodox (and thus orthodox) economics.