Competition drives price toward exchange value determined by embedded labour

Evidence

The greater the competition between several sellers, the closer the price of a commodity reflects its exchange value which, in turn, is determined by (or reflects) the total experiential labour (see 1.2.1 below) expended in its production by every human involved, directly or indirectly, in producing it. — Yanis Varoufakis, Technofeudalism, 787

Categorization

• DEFINE: Establishes the labour theory of value in one condensed proposition.
• corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 787
• XREF: connects to: Market microstructure shapes price behavior independently of underlying fundamentals — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 88; Capitalist profit arises even when all goods exchange at fair value — Clara E. Mattei, Escape from Capitalism, 97; Surplus value is the gap between labour infused and labour bought — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 795 (+7 more)

Broader Connections

• Labor is the commodity whose surplus value is expropriated and realized through market exchange #expands (0.85)
• Employer competition drives wages toward labour’s exchange value while monopsony allows rent extraction. #qualifies (0.85) — Yanis Varoufakis, Technofeudalism, 798
• Surplus-value emerges where equivalent exchange opens a gap over reproduction costs #expands (0.80) — Dirk Braunstein, Adorno’s Critique of Political Economy, 1376
• Profit does not reward capital but results from labour’s dual nature #expands (0.80) — Yanis Varoufakis, Technofeudalism, 75
• Unemployment functions as the pivot keeping labor markets within exploitative limits of capital dominance #expands (0.80) — Clara E. Mattei, Escape from Capitalism, 256
• Common ownership of competing firms suppresses competition and inflates prices #qualifies (0.75)