Economic Theories on Value and Price
Posted: Mon Jan 20, 2025 8:36 am
Classical school
The classical school considers that price and value depend directly on the amount of work associated with the good.
Adam Smith, D. Ricardo or K. Marx .
Marginalist school
The marginalist school relates price and value to bulgaria phone number list elements (desires, needs, etc.) and not only to production costs.
William S. Jevons, Cari Menger and L. Walras .
Utilitarianism
According to utilitarianism, the value and price of a good is determined by its ability to produce happiness or pleasure in a person.
Jeremy Bentham or John Stuart Mill .
Difference between Value and Price
As we have said before, we should not confuse the concepts of price and value, as each has its own connotation. To better understand this difference, we will use the example of Warren Buffet.
Price is what you pay.
Value is what you get.
Warren Buffet
That is to say, price refers to what is paid for a product or service.
And value is related to what we actually receive and this will depend on each one as an individual. It is related to what one manages to solve, cover a need, a problem or a specific task. Therefore it is a matter of individual perception.
The classical school considers that price and value depend directly on the amount of work associated with the good.
Adam Smith, D. Ricardo or K. Marx .
Marginalist school
The marginalist school relates price and value to bulgaria phone number list elements (desires, needs, etc.) and not only to production costs.
William S. Jevons, Cari Menger and L. Walras .
Utilitarianism
According to utilitarianism, the value and price of a good is determined by its ability to produce happiness or pleasure in a person.
Jeremy Bentham or John Stuart Mill .
Difference between Value and Price
As we have said before, we should not confuse the concepts of price and value, as each has its own connotation. To better understand this difference, we will use the example of Warren Buffet.
Price is what you pay.
Value is what you get.
Warren Buffet
That is to say, price refers to what is paid for a product or service.
And value is related to what we actually receive and this will depend on each one as an individual. It is related to what one manages to solve, cover a need, a problem or a specific task. Therefore it is a matter of individual perception.