Intersectorial Competition

Intersectorial Competition

 

one of the varieties of capitalist competition, a specific form of the struggle among individual capitalists, corporations, and monopolistic associations.

Intersectorial competition is a process by which capital flows from one sector to another. As a result the proportions of reproduction of social capital form in a spontaneous (unplanned) manner. The flow of capital from sectors with a low rate of profit to sectors with a higher rate of profit leads to the formation of average profit, which plays an important part in converting the value of a commodity into the production price, intersectorial competition evens out the sectorial rates of profit that take shape in the process of competition within a sector.

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