An intrinsic theory of value (also called theory of objective value) is a theory of value in economics which holds that the value of an object, 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.
The labour theory of value is one early example of an intrinsic theory, which was originally proposed by Adam Smith and further developed by David Ricardo and Karl Marx and later disputed by Carl Menger. Similarly, the Physiocrats based their theory of value in the land. Modern theories of intrinsic value are more compatible with the later Subjective theory of value and contend that although all values are ultimately subjective, a range of reasonable or sustainable fair values for an asset or good may be estimated using objective measures.
Video Intrinsic theory of value
See also
- Adam Smith
- Labor theory of value
- Marginalism
- Socialist economics
- Subjective theory of value
Maps Intrinsic theory of value
References
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