The mechanism and results of intra-industry and intersectoral competition in the theory of Karl Marx

Intra-industry competition is competition between manufacturers of one industry for the most favorable conditions for the production and sale of goods. Marx considered such means of intra-industry competition as lowering the price of goods and reducing the cost of production.

Intra-industry competition is complemented by cross-industry competition. They exist simultaneously, so the separation of their mechanisms can only be conditional. Intersectoral competition in the theory of K. Marx is presented as competition between producers of different industries for the most favorable conditions for the application of capital, and the main means of such competition was the overflow of capital between industries. If in a certain industry the average industry rate of profit is higher than in other industries, then in the absence of barriers to entry into these industries, an overflow of capital begins.

In modern conditions, the concept of intersectoral competition has changed. Many scientists use the analysis of intersectoral competition given by K. Marx. However, the very concept of cross-industry competition now implies competition between producers of different industries producing substitute goods, competing for the same consumer, satisfying the same or similar needs.

It can be concluded that in the theory of competition K. Marx the following functions of competition were analyzed:

stimulation of technological progress and its introduction into production; reduction of industry costs and prices; redistribution of capital between industries in accordance with social needs [2 pp.34-37].