In this paper we use insights from Sraffa's classic, Production of Commodities by Means of Commodities, to argue that the classical notion of 'centre of gravitation' is not a sound concept. The market mechanics of labour allocation through price signals and quantity adjustments, given effectual...

This paper argues that the received interpretation of Sraffa's prices as classical 'natural prices' that would prevail when the system is at the centre of gravitation cannot be retained. It offers an alternative interpretation in which Sraffa's prices are completely independent of demand...