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This actually might provide a test for our two theories: it the tax approach would not work, then monopolistic competition might be a force too strong - and the next candidate for the �main cause�.

Heterogeneous labour might be congruent to monopolistic competition - but, anyhow, I�d rather take heterogeneity as the starting point, and then proceed with the model, and stay away from the - perhaps ideological - debate on market type.

The Theory of monopolistic competition: a re-orientation of the theory of value.

The Theory of monopolistic competition; a reorientation of the theory of value.