ABSTRACT
Introduction In Chapter 13 we examined the actions that capitalists pursue as they attem pt to alter production methods to increase profits and m arket share — actions that both stimulate instability and respond to it. A second traditional strategy is the centralization and concentration o f the ownership o f production into fewer, larger corporations (see Chandler, 1962, 1977; Holland, 1976; Hym er, 1972). Extending control in this manner replaces marketplace transactions, over which firms have little control, w ith internal, planned transactions among corporate affiliates. Production costs are then reduced because corporations can take advantage o f scale economies, reduce uncertainties by controlling linkages, increase m onopoly power over markets by reducing competition, and increase the degree o f influence that individual corporations have in national and local economies. Once again responses aimed at reducing uncertainty and instability engender further disequilibrium behaviour as the large corporations change the terms o f inter-capitalist competition.
