value

economics
Also known as: valuation

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Assorted References

Austrian school of economics

  • In Austrian school of economics

    …economists who, in determining the value of a product, emphasized the importance of its utility to the consumer. Carl Menger published the new theory of value in 1871, the same year in which English economist William Stanley Jevons independently published a similar theory.

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  • Menger
    • Menger, detail of a drawing by F. Schmutzer, 1910.
      In Carl Menger

      …used the subjective theory of value to disprove the Aristotelian view that exchange involves a transaction of equal value for equal value. In exchange, Menger pointed out, people will give up what they value less in return for what they value more, which is why both sides can gain from…

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work of

    • Galiani
      • Ferdinando Galiani
        In Ferdinando Galiani

        …first work, he evolved a theory of value based on utility and scarcity; this depth of thinking on economic value would not be seen again until discussions of marginal utility developed in the 1870s. Galiani’s second treatise stressed the necessity for the regulation of commerce—an argument that opposed the physiocrats,…

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    • Hicks
      • In Sir John R. Hicks

        …of what economists believe about value theory (the theory about why goods have value) can be reached without the assumption that utility is measurable. Fourth, he came up with a way to judge the impact of changes in government policy. He proposed a compensation test that could compare the losses…

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