Intrinsic theory of value

Last updated

In economics, an intrinsic theory of value (also called theory of objective value) is any theory of value which holds that the value of an object or a good or service is intrinsic, meaning that it can be estimated using objective measures. Most such theories look to the process of producing an item, and the costs involved in that process, as a measure of the item's intrinsic value. Paradigmatically, money is supposed to be good, but not intrinsically good: it is supposed to be good because it leads to other good things, such as buying better teaching equipments at a local primary school. [1] The explanation aims to differentiate the original meaning of intrinsic value from the actual physical benefit it has.

The labour theory of value is an early example of an intrinsic theory, which was originally proposed by Adam Smith and further developed by David Ricardo and Karl Marx. Similarly, the physiocrats based their theory of value in the land.

See also

Related Research Articles

In analytic philosophy, anti-realism is a position which encompasses many varieties such as metaphysical, mathematical, semantic, scientific, moral and epistemic. The term was first articulated by British philosopher Michael Dummett in an argument against a form of realism Dummett saw as 'colorless reductionism'.

<span class="mw-page-title-main">Axiology</span> Philosophical study of value

Axiology is the philosophical study of value. It includes questions about the nature and classification of values and about what kinds of things have value. It is intimately connected with various other philosophical fields that crucially depend on the notion of value, like ethics, aesthetics or philosophy of religion. It is also closely related to value theory and meta-ethics. The term was first used by Eduard von Hartmann in 1887 and by Paul Lapie in 1902.

Hedonism refers to a family of theories, all of which have in common that pleasure plays a central role in them. Psychological or motivational hedonism claims that human behavior is determined by desires to increase pleasure and to decrease pain. Normative or ethical hedonism, on the other hand, is not about how humans actually act but how humans should act: people should pursue pleasure and avoid pain. Axiological hedonism, which is sometimes treated as a part of ethical hedonism, is the thesis that only pleasure has intrinsic value. Applied to well-being or what is good for someone, it is the thesis that pleasure and suffering are the only components of well-being. These technical definitions of hedonism within philosophy, which are usually seen as respectable schools of thought, have to be distinguished from how the term is used in "everyday language". In that sense, it has a negative connotation, linked to the egoistic pursuit of short-term gratification by indulging in sensory pleasures without regard for the consequences.

The labor theory of value (LTV) is a theory of value that argues that the economic value of a good or service is determined by the total amount of "socially necessary labor" required to produce it.

In metaphilosophy and ethics, metaethics is the study of the nature, scope, and meaning of moral judgment. It is one of the three branches of ethics generally studied by philosophers, the others being normative ethics and applied ethics.

In ethics and the social sciences, value theory involves various approaches that examine how, why, and to what degree humans value things and whether the object or subject of valuing is a person, idea, object, or anything else. Within philosophy, it is also known as ethics or axiology.

Value or values may refer to:

<span class="mw-page-title-main">Fact</span> Datum or structured component of reality

A fact is a true datum about one or more aspects of a circumstance. Standard reference works are often used to check facts. Scientific facts are verified by repeatable careful observation or measurement by experiments or other means.

In ethics, welfarism is a theory that well-being, what is good for someone or what makes a life worth living, is the only thing that has intrinsic value. In its most general sense, it can be defined as descriptive theory about what has value, but some philosophers also understand welfarism as a moral theory, that what one should do is ultimately determined by considerations of well-being. The right action, policy or rule is the one leading to the maximal amount of well-being. In this sense, it is often seen as a type of consequentialism, and can take the form of utilitarianism.

The subjective theory of value is an economic theory for explaining how the value of goods and services are not only set but also how they can fluctuate over time. Its development helped to better understand human action and decision making in economics. The theory follows that the value of any good is not determined by the inherent property of the good, nor by the cumulative value of components or labour needed to produce or manufacture it, but instead is determined by the individuals or entities who are buying or selling the object in question.

Use value or value in use is a concept in classical political economy and Marxist economics. It refers to the tangible features of a commodity which can satisfy some human requirement, want or need, or which serves a useful purpose. In Karl Marx's critique of political economy, any product has a labor-value and a use-value, and if it is traded as a commodity in markets, it additionally has an exchange value, defined as the proportion by which a commodity can be exchanged for other entities, most often expressed as a money-price.

A theory of value is any economic theory that attempts to explain the exchange value or price of goods and services. Key questions in economic theory include why goods and services are priced as they are, how the value of goods and services comes about, and—for normative value theories—correct price of goods and services.

In moral philosophy, instrumental and intrinsic value are the distinction between what is a means to an end and what is as an end in itself. Things are deemed to have instrumental value if they help one achieve a particular end; intrinsic values, by contrast, are understood to be desirable in and of themselves. A tool or appliance, such as a hammer or washing machine, has instrumental value because it helps you pound in a nail or clean your clothes. Happiness and pleasure are typically considered to have intrinsic value insofar as asking why someone would want them makes little sense: they are desirable for their own sake irrespective of their possible instrumental value. The classic names instrumental and intrinsic were coined by sociologist Max Weber, who spent years studying good meanings people assigned to their actions and beliefs.

The transcendentals are "properties of being", nowadays commonly considered to be truth, unity, beauty, and goodness. The concept arose from medieval scholasticism, but originated with Plato, Augustine, and Aristotle in the West. It is believed to be prefigured in the Bhagavadgita, which is an Eastern classic. Viewed ontologically, the transcendentals are understood to be what is common to all beings/things/identities, and all things that exist can be judged, or appraised, or may be said to be or possess the innate qualities and characteristics which we consider or deem True, Beautiful (Aesthetic/Experiential) and Good. From a cognitive and "first principles" horizon, going all the way back to Aristotle, they are the "first" concepts, since they cannot be logically or deductively traced back to "a prior metaphysics" preceding their Rational unfoldment and display.

Managerial psychology is a sub-discipline of industrial and organizational psychology that focuses on the effectiveness of individuals and groups in the workplace, using behavioral science.

A quality is an attribute or a property characteristic of an object in philosophy. In contemporary philosophy the idea of qualities, and especially how to distinguish certain kinds of qualities from one another, remains controversial.

Production is the process of combining various inputs, both material and immaterial in order to create output. Ideally this output will be a good or service which has value and contributes to the utility of individuals. The area of economics that focuses on production is called production theory, and it is closely related to the consumption theory of economics.

<span class="mw-page-title-main">Well-being</span> General term for condition of individual or group

Well-being, or wellbeing, also known as wellness, prudential value, prosperity or quality of life, refers to what is intrinsically valuable relative to someone. So the well-being of a person is what is ultimately good for this person, what is in the self-interest of this person. Well-being can refer to both positive and negative well-being. In its positive sense, it is sometimes contrasted with ill-being as its opposite. The term "subjective well-being" denotes how people experience and evaluate their lives, usually measured in relation to self-reported well-being obtained through questionnaires.

<span class="mw-page-title-main">Good and evil</span> Philosophical dichotomy

In religion, ethics, philosophy, and psychology "good and evil" is a very common dichotomy. In cultures with Manichaean and Abrahamic religious influence, evil is perceived as the dualistic antagonistic opposite of good, in which good should prevail and evil should be defeated. In cultures with Buddhist spiritual influence, both good and evil are perceived as part of an antagonistic duality that itself must be overcome through achieving Śūnyatā meaning emptiness in the sense of recognition of good and evil being two opposing principles but not a reality, emptying the duality of them, and achieving a oneness.

<span class="mw-page-title-main">Values (Western philosophy)</span>

The values that a person holds may be personal or political depending on whether they are considered in relation to the individual or to society. Apart from moral virtue, examples of personal values include friendship, knowledge, beauty etc. and examples of political values, justice, equality and liberty. This article will outline some current ideas relating to the first group – personal values. It will begin by looking at the kinds of thing that have value and finish with a look at some of the theories that attempt to describe what value is. Reference will be made solely to Western sources although it is recognised that many, if not all, of the values discussed may be universal.

References

  1. Schroeder, Mark (2016), "Value Theory", in Zalta, Edward N. (ed.), The Stanford Encyclopedia of Philosophy (Fall 2016 ed.), Metaphysics Research Lab, Stanford University, retrieved 2020-11-09