Economics Dictionary of ArgumentsHome
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| Paradox of Value: The Paradox of Value refers to the apparent contradiction where essential goods (e.g., water) have low market prices, while non-essential goods (e.g., diamonds) have high prices. This is resolved by distinguishing between total utility (importance) and marginal utility (value of the next unit), which determines price. See also Value._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Austrian School on Paradox of Value - Dictionary of Arguments
Rothbard IV 7 Paradox of Value/Austrian School/Rothbard: Looking clearly at the individual rather than at broad “classes,” the Austrians could easily resolve the “value paradox” that had stumped classicists. For no individual on the market is ever faced with the choice between “bread” as a class and “diamonds” as a class. The Austrians had shown that the greater the quantity - the larger the number of units - of a good that anyone possesses, the less he will value any given unit. >Paradox of Value/Classical Economics. Value/use value: The reason that “bread” is so much cheaper than “diamonds” is that the number of loaves of bread available is enormously greater than the number of carats of diamonds: hence the value, and the price, of each loaf will be far less than the value and price of each carat. There is no contradiction between “use value” and “exchanged value”; given the abundance of loaves available, each loaf is less “useful” than each carat of diamond to the individual. >Individuals/Austrian School._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Austrian School Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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