4 ms·
Separating value and price is 101 of marginal economics. There couldn't be consumer surplus without it. I don't know how you could be marginalist and believe m
by UK-Al05 6y ago
Separating value and price is 101 of marginal economics.
There couldn't be consumer surplus without it. I don't know how you could be marginalist and believe market price = value for user.
- naravara 6y agoIn theory. In practice just about every quantitative method or metric used to measure social welfare or individual well being falls back on price. And since our culture has a fetish for positivism and anything that looks like “math” those are the fixed assumptions that guide our decision making.
- dredmorbius 6y agoThe fundamental principle of marginalism is, er, marginalism: that the derivative of supply or demand functions is what determines market price (not to be confused with "value", though it often is). The marginal cost or value.