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Topic: Subjective theory of value


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  Subjective theory of value - Wikipedia, the free encyclopedia
The theory contrasts with intrinsic theories of value that hold that there is an objectively correct value of an object that can be determined irrespective of individual value judgements, such as by analyzing the amount of labor incurred in producing the object (see labor theory of value).
The subjective theory contrasts with intrinsic theories of value, such as the labor theory of value which holds that the economic value of a thing is contingent upon how much labor was exerted in producing it.
The subjective theory of value is a denial of intrinsic value.
en.wikipedia.org /wiki/Subjective_theory_of_value   (902 words)

  
 An Introduction to Austrian Economics
Valuation consists in preferring a particular increment of a thing over increments of alternative things available; the outcome of valuation is the ranking of definite quantities of various goods and services with which the individual is concerned for purposes of decision and action.
Theory resorts to the hypothetical concept of the scale of values in seeking to explain and understand the nature of human valuations.
It may appear that the concept of exchange value introduces a departure from the subjective theory of value, yet this is not the case.
www.mises.org /austecon/chap4.asp   (4023 words)

  
 Subjective Value Theory in Iraq
Subjective value theory in economics holds that value is subjective — that is, that the value of any item, like beauty, lies in the eyes of the beholder.
For the record, my own personal value scheme holds that the arrest of Saddam Hussein was not worth the life of one single American soldier, which is saying, in other words, that I place a higher value on the lives of our troops than on the arrest of Saddam Hussein.
That subjective valuation is one reason I oppose both the invasion and occupation of Iraq.
www.fff.org /comment/com0312k.asp   (1215 words)

  
 Re: Is there a generally accepted theory of value?
The classical tehory of value, as > exposed by Adam Smith, is the epitome of an OBJECTIVE theory of value.
Either (1) There is one agreed upon theory of value Or (2) There are two theories: (i) The labor theory of value (ii) The subjective theory of value.
And here Zerge says the classical theory is not the Labor Theory of Value: "I have always understood the difference between the classical theory of value and LTV." Thus, according to Zerge, if a canonical representative of the classical theory has a theory of value at all, it is not the Labor Theory of Value.
www.talkaboutinvestments.com /group/sci.econ/messages/233285.html   (2301 words)

  
 A reply to correspondence on Marx's theory of value
Therefore the subjective value placed upon the hamburger is different in the mind of each of the participants in the exchange process and consequently we cannot say that an equivalent has exchanged for an equivalent.
The source of the surplus value (profit) extracted by the capitalist is the difference between the value of the labour power which the capitalist purchases by paying wages and the value which is added by the worker in the course of the working day.
Although you are obviously quite unaware of the history of this question, the various theories of value you advance reproduce, in a confused form, the positions adopted at different points by the bourgeois economists in the 19th century as they sought to develop a theoretical basis for capitalism.
www.wsws.org /articles/1999/aug1999/val1-a13.shtml   (4316 words)

  
 Economic Values As Objective - Objectivism Online Forum   (Site not responding. Last check: 2007-10-14)
My argument is that the "subjective theory of value" is essentially correct, but incorrectly named, and should be distinguished from two contrasting erroneous views of economic value by calling it the objective theory of value, since market prices are in fact objective.
For example, according to the labor theory of value espoused by Marxism, the value of a good is determined by the amount of labor put into it.
Therefore, a "subjective value" in the philosophical-ethical sense is one not reached by the process of reason.
forum.objectivismonline.net /index.php?showtopic=6085   (1539 words)

  
 Mises Economics Blog: Comment on Artwork and the Subjective Theory of Value   (Site not responding. Last check: 2007-10-14)
While it is clear that it is the "subject" valuing the piece (or anything else), it is not therefore an immediate conclusion that all values are subjective.
The subjective theory of economic value does not deny that there might be an objective subject of aesthetics - one work of art MAY be objectivlly better than another, regardless of the value placed upon if by human beings.
The subjective theory of economic value (indeed economics generally) is silent on this issue.
blog.mises.org /mt/comments?entry_id=5636   (3085 words)

  
 my equations...represent pretty much what Adam Smith said
There are dozens of theories of value, and you could more or less classify them on a spectrum along the subjective-objective value.
The classical tehory of value, as exposed by Adam Smith, is the epitome of an OBJECTIVE theory of value.
Then the subjective value of a producto is how many hours you are willing to work for it OR how many other products (or "utilit" if it pleases you) you are willing to forfeit to buy that product, with your inherited money.
www.dreamscape.com /rvien/Fumbles/PrettyMuch.html   (942 words)

  
 Peak Oil Theory of Value
So a theory of value must be the premise or set of premises upon which an argument rests, relating to the worth of something, or its utility to satisfy the needs of people.
That is, the value of something is set by the marginal purchaser, which is another way of saying that the theory recognizes that one thing may be more useful in satisfying the wants of one person than another, or of no use to one person and of immense use to another.
The subjective theory of value contrasts with the intrinsic theory of value that holds that there is an objectively correct value of an object that can be determined irrespective of individual value judgments, such as by accounting for the amount of labor used to produce a product.
www.whiskeyandgunpowder.com /Archives/2006/20060921.html   (2381 words)

  
 Labor theory of value - Wikipedia, the free encyclopedia
The labor theory of value (LTV) is an economic theory that defines the "value" of an exchangeable good or service as equal to the amount of labor required to produce it, including the labor required to produce the raw materials and machinery used in the process.
Labor theory of value prevailed among classical economists through the mid-19th century and it is a major pillar of traditional Marxian economics, but is generally treated as only a topic for history of thought in most contemporary programs in economics.
For Karl Marx, the labor theory of value was both a theory of exchange and a theory of exploitation.
en.wikipedia.org /wiki/Labor_theory_of_value   (6195 words)

  
 IMMANENT REALIST AND AUSTRIAN ARISTOTELIAN ON VALUE THEORY
Even though people may make incorrect value judgments, as with the example of getting the latest fashions, value is determined by the valuer for some need to benefit his or her life.
This theory of value was most aptly coined by the founder of the Austrian school of economics, Carl Menger (1840-1921).
Tancred Lidderdale, “Chapter 3: The Theory of Value” Carl Menger’s Principles of Economics in the Ludwig von Mises Institute, 1998.
www.quebecoislibre.org /06/060507-6.htm   (4016 words)

  
 Buchanan and Thirlby, L.S.E. Essays on Cost, Thirlby, Subjective theory of value and accounting cost: Library of ...
Speaking of the subject in which he is particularly interested—income—he acknowledges the substantial truth of Professor Canning's view that accountants have not developed, and probably have never put their minds to the task of developing, any complete philosophical system of thought about it.
My discussion of 'The subjective theory of value and accounting "cost" ' is intended to throw out some suggestions which may not be immediately apparent on the face of it.
Such a budget, without an analysis of the opinion of the decision-maker attached to it, would not disclose the subjective acts of valuation which determined that his planned course of action was in his opinion the most advantageous or 'profitable'.
www.econlib.org /library/NPDBooks/Thirlby/bcthLS6.html   (6272 words)

  
 Austrian School, Capital Theory and Loan Markets
In addition, the theory divided the factors into classes based on whether human effort was involved (labor vs. non-labor) and historical origin (i.e., whether they were produced or "natural").
The modern theory of value and prices is not based on the classification of the factors of production as land, capital, and labor.
The advantage of this theory over a theory that stresses material capital goods is that it places the emphasis on higher-order goods and time rather than on a specific class of higher-order goods.
www.gunning.cafeprogressive.com /subjecti/workpape/aucaploa.htm   (5987 words)

  
 Austrian Economics
The value of goods is measured by the importance of the want whose satisfaction is dependent upon the possession of the goods.
Because the value of goods and services resides in the mind of acting individuals, and not the goods themselves, the Austrian School uses a subjectivist theory of value and an ordinal definition of utility.
The subjective theory of value, one of the Austrian school's main pillars, actually goes back to the medieval Scholastic philosophers.
mason.gmu.edu /~tlidderd/menger/aus_1_1.html   (1014 words)

  
 Epistemological Problems, Subjective Theory of Value, Exchange Ratios
Individuals as consumers value goods exactly so much and no more or less at a given moment because of the operation of the social and the natural forces that determine their lives.
Only the historical development of economics as a science can explain why the meaning of this theory could be so much misunderstood that many even wanted to assign it entirely to psychology and to separate it altogether from catallactics, and still others could see in it only a materialistic theory of value and utility.
Hence arose the problem of the paradox of value, which the earlier theory was helpless to resolve.
www.mises.org /epofe/c5sec1.asp   (695 words)

  
 The Concise Guide To Economics, by Jim Cox   (Site not responding. Last check: 2007-10-14)
The labor theory of value is the bedrock basis of Marxist or socialist economic theory.
The labor theory of value is a denial of the well-established law of diminishing marginal utility which states that the value to the consumer falls with additional consumption of the good in question.
In short, the whole of socialist economic theory is derived from the mistaken labor theory of value--it collapses for lack of a base; the whole of free market economic theory is derived from the solid base of the valid subjective theory of value.
www.conciseguidetoeconomics.com /book/LTV   (828 words)

  
 Print Page - LTV vs STV
Whats really going on here is that the STV attempts to conflate economics into an explanation of all human action, to turn economics into a sort of "Theory of Everything" for the social sciences, and thus become a justification for extreme exploitation and oppression by the institutions of capitalism.
Exactly.  The STV makes you focus on the human mind as the basis of economics, when the reality is that economics is driven by the material world, and human's attempts to shape the material world to fulfill their needs and wants.  Thats what labor is.
The one may be called 'value in use;' the other, 'value in exchange.' The things which have the greatest value in use have frequently little or no value in exchange; and, on the contrary, those which have the greatest value in exchange have frequently little or no value in use.
forum.freestateproject.org /index.php?action=printpage;topic=9872.0   (16431 words)

  
 A Stitch in Haste On the Right to Be a Cretin
I don't care whether Rand called this "objective value," "subjective value," "intrinsic value" or "zoop." The rest of the world calls it the subjective theory of value, it's the correct theory of value, and it's perfectly consistent with — indeed is a prerequisite for — Rand's philosophy specifically and capitalism generally.
Meanwhile, it's precisely the objective-intrinsic theory of value that lays the groundwork for collectivist policy.
If I'm not greatly mistaken, "value to whome and in what context" is a nearly exact quote from rand, and she used the words "subjective value" in this very context.
kipesquire.powerblogs.com /posts/1133454828.shtml   (1822 words)

  
 HES: QUERY -- Endogeneity and Exogeneity
I did not mean to equate the theory of value in a general, or philosophical, sense with the subjective theory of value, which is only an economic theory of the relationship between money prices and costs.
Regarding your question about the role of other influences on consumer preferences in subjective theory: The supplier-producer-entrepreneur, in the functional sense, has the task of appraising factors with regard to their capacity to satisfy consumer wants.
In fact, the subjective theory of value was sometimes expressed entirely in terms of opportunity costs, which gave the impression that _only_ the demand side had an influence.
eh.net /pipermail/hes/1999-October/005437.html   (403 words)

  
 Ayn Rand & Ludwig Von Mises Discuss His Economic... - Objectivism Online Forum   (Site not responding. Last check: 2007-10-14)
Once Rand explained precisely, what she meant by the use of the term "objective," apparently Mises agreed, that his use of the term "subjective," in the economic "subjective theory of value," would have been better named, as "objective." ie.
While we may value certain ends for rational or irrational, subjective or objective reasons, the fact that we do value the ends we value is an objective fact.
So, it is credible to think that he'd say people (at least some people) do come to their valuations objectively; I suspect that he would add that that is the concern of a philosopher, not an economist.
forum.objectivismonline.net /index.php?showtopic=6003   (489 words)

  
 Re: HES: DISC -- Definition of Value (Fisher)
subjective value theory, which was introduced by Carl Menger in 1861
Thus, the subjective theory of value was not a theory about value or
(or subjective theory of value and costs) was expressed in writings
eh.net /lists/archives/hes/dec-1998/0016.php   (594 words)

  
 SSRN-Suboptimization in Accounting Education and the Subjective Theory of Value: Some Suggestions for Change by Robert ...
The subjective theory of value - the theory that something is worth whatever someone is willing to pay for it - has been around for more than 100 years.
Applying the subjective theory of value to graduate accounting and tax curricula in the United States makes it clear that, in order to offer higher quality programs, it is necessary to give students a choice.
Rather than dictating from above what courses must be taken to receive a degree, students must be free to choose for themselves what courses they, in their own subjective judgment, place the highest value on.
papers.ssrn.com /sol3/papers.cfm?abstract_id=251471   (367 words)

  
 Mises Economics Blog: Artwork and the Subjective Theory of Value   (Site not responding. Last check: 2007-10-14)
Mises Economics Blog: Artwork and the Subjective Theory of Value
Yumi Kim's sister was telling some friends that a pencil drawing of a dollar sign by Andy Warhol was in the market for about $18,000.
According to the subjective theory of value, the value we place on goods and services is determined by the individual who is evaluating, and there is no intrinsic value as such in items themselves.
blog.mises.org /archives/005636.asp   (3576 words)

  
 The Marginalist Revolution
(William Stanley Jevons, Theory of Political Economy, 1871: p.xliv-xlv).
For under the honest belief that Ricardo and his followers had rendered their account of the causes that determine value hopelessly wrong by omitting to lay stress on the law of satiable wants, he led many to think he was correcting great errors; whereas he was really only adding very important explanations."
In the republic of the sciences, sedition and even anarchy are beneficial in the long run to the greatest happiness of the greatest number."
cepa.newschool.edu /het/essays/margrev/margrev.htm   (393 words)

  
 Hit and Run   (Site not responding. Last check: 2007-10-14)
"This doesn't mean each note has no value...just relative value.
Comment by: at September 2, 2003 03:30 AM Price is determined by what someone will pay for something - value is basically a personal thing, unique to each individual, and cannot much be reasonably quantified.
Unless you are using the terms interchangably, of course.
www.reason.com /hitandrun/2003/09/the_subjective.shtml   (317 words)

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