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It makes sense if you believe value to be an objective thing, where each good has a fixed value that is a fact. In a slightly more complicated model - or the r
by Kalium 5y ago
It makes sense if you believe value to be an objective thing, where each good has a fixed value that is a fact.
In a slightly more complicated model - or the real world - the value of a good or service is informed by things like control and location. Value is not objective, but subjective. Value can be and often is created by moving good from a location where they are values little to a location where they are valued highly.
- chmod600 5y ago"It makes sense if you believe value to be an objective thing" Does any serious economic philosophy actually believe that foolishness?
- Kalium 5y agoIn feudal times, merchants were often derided for supposedly charging a price different from the "true price" of products. So perhaps not in any serious modern economic philosophy, but people definitely arrive at this idea in naive ways.
- anoncake 5y agoAnd rightly so. Value may be subjective, but cost – and thus the correct price of a good – is not.