An introduction to the theory of value : $b On the lines of Menger, Weiser, and Böhm-BawerkSmart, William
General
An introduction to the theory of value : $b On the lines of Menger, Weiser, and Böhm-Bawerk
Smart, William
Austrian school of economics; Value
Thus far we have considered each man’s wants as ranged on a scale;
in correspondence with these wants, each man attaches degrees of
importance to the goods that come within his knowledge and control,
and ranges _goods_ also on a similar scale. We have seen that, owing
to the infinite subjective differences in men on the one hand, and
the effect of provision on the dependence of want on the other, every
man’s scale is different from every other man’s. That is to say, every
man, subjectively, attaches his own valuation to goods. As no man,
however, liveth to himself, these valuations come together and are
compared in every act of barter and exchange. The reflex influence of
the valuations that each man meets in any market, however simple, is
very great; constant contact of man with man in exchange assimilates
the valuations of all, till, unconsciously, we come very much to regard
the average valuation made by the people we meet as our own valuation.
For instance, in buying an article, if we looked solely and entirely
to what that article represented in life, pleasure, satisfaction,
self-realisation—however we name our subjective centre—we should,
perhaps, value it at 100. But if we meet everywhere with people who
value that article, say, from 50 to 60, it is inevitable that our
estimate should be strongly affected thereby. And this explains how
that, notwithstanding the enormous differences in temperament, culture,
and conditions, the valuations which meet on a market do not diverge
so widely as one would expect. If we consider that, of three men who
bid for a horse, the value of it to A may depend on his being a country
doctor, to B, on his being a hunting man, and to C, on his having a
sluggish liver, we could scarcely understand how these different values
come to be assessed within a few pounds or shillings of each other, if
it were not for this kind of arbitrage.
When we say, then, that men who meet as exchangers of different goods
put their own subjective valuations on the articles they bring to
market, we must be understood to mean valuations that are not more
subjective than man himself is. A man’s valuations can no more escape
being to a great extent the valuations of other men, than he himself
can escape being what other people “make” him.
Public-domain text, read in full here on John Shaqi.
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