What are the factors of value? According to the Austrian School, value is subjective. It is up to each individual to take in information and make a value judgement in combination with their knowledge and experiences. However, what are the “factors” of value? What factors do individuals find valuable in a good or service to exchange their $$$ for that object?
Use value and exchange value.
However exchange value is really just a sub-category of use value (since a highly exchangable good is valuable because it can be used to get what someone wants indirectly - by way of exchange). Hence the use value of commodities is their exchangability.
The concept of scarcity is also obviously very important, which is why the idea of marginal utility is so critical (since it accounts for scarcity).
Menger is the master if you want to wrap your head around all of this. Principles of Economics is both an easy and enjoyable read, which I couldn’t recommend too highly.
Thanks for the insight. However, perhaps I am looking for something different, and am not wording it correctly.
For instance, let’s say there is a hot dog for 99 cents. Most folks would jump at that chance because of the price. However, as a vegetarian, I would give it a pass. I value my 99 cents more than a hot dog. That is the type of value I am after. Two people seeing the same thing, but to one person it is more valuable to the other because of various factors, in this case, vegetarianism. Is there more general terminology for this, but not as general as marginal utility and scarcity?
That’s more of a question of physcology than economics, no?
Dude, 99 cents for a hot dog is a pretty good deal even if you’re a vegetarian.
This depends on why he is vegetarian and how strongly he feels about this issue. To him a hot dog is worthless, possibly less than worthless. It might be he would not eat the hot dog even if you offered to PAY HIM. On principle he might decline the offer. I would not eat roast cat even if you offered to pay me to eat it.
We’ll see how you stodgy and discriminating you are when the Greatest Depression hits, and you are boiling your pocket lint to make soup.
I would eat many things but cats and dogs I would not. There are plenty enough sewer rats for all. But I do agree we are going into a great depression.
You just gave me a great idea for a website. Depression recipes.
My brain hurts & doesn’t know whether to laugh or cry [:|]
It well may be a question of psychology. However, I think it may be worth exploring within the context of economics.