The Ultimate Standard of Value [27]
is dependent upon goods in general. If, however, we desire a more concrete standard, one that will give us a more definite idea, just how goods are connected with well-being, then we must take not one but two standards, which though co-ordinate in theory are yet of very unequal practical importance, because of the greater prevalence of the phenomena in which one of them is operative; one is the utility of the good, and the other is the personal sacrifice or disutility involved in the acquisition of the good. The domain of the latter is much more limited than we usually think. In the great majority of cases, even in those in which the so-called law of cost undoubtedly plays a part, the final determination of the value of goods is dependent upon utility.
NOTES:
1. The name, given us by our opponents, includes a certain group of theoretic economists. Not all of those included are Austrians, nor does the group include all the Austrian economists. I would also take occasion to remark that when in the following I speak in the name of the Austrian economists, I do not wish that anyone else shall be held responsible for what I may say or for the manner of saying it. Conversely I do not wish to place myself in the position of being responsible for the statements of every member of that group. Again, while I have given statement to certain general doctrines of the Austrian economists, yet I would expressly state that the kernel of the doctrine does not belong to me, but is, to a large degree, the outcome of the investigations of my able colleagues, especially Menger and Wieser.
2. Wieser's "Ursprung und Haupigeselze des Wirtschaftlichen Wertes." Wien, 1884, p. 104. Then my "Grundzage der Theorie des Wirthshaftlichen Guterwertes, in Conrad's Jahrbucher fur Nat-Oek. N.F.B. XIII, 1886, p. 42. Then my article, "Wert" in Conrad-Lexischen Handworterbuch der Staatswissenschaften.
3. Essay on the "Wertheorien und Wertgesetze," in Conrad's Jahrbucher, N.F.B. XVI.
4. "Ultimate Standard of Value," Yale Review, November, 1892.
5. Die Classiche Wettheorie und die Theorie vom Grenznutzin," Conrad's Jahrbucher. "Zur classichen Wert und Preistheorie" N.F., Vol. 20, in the same Jahrbucher, third edition, Bd. 1.
6. "Bohm-Bawerk on Value and Wages," in the Quarterly Journal of Economics, October, 1890; also "Marginal Utility and Value," in the same journal, April 1893. Near the completion of the present paper,a third paper by Professor Macvane came to hand, "The Austrian Theory of Value," Annals of the American Academy, November, 1893.
7. "Principles of Economics", London, 1890 (second edition, 1891) and "Elements of Economics of Industry", London, 1892. passim.
8. A very able criticism of my "Positive Theory of Capital", in the Economic Journal, June 1892, page 328. Also in the same number a criticism of Smart's "Introduction to the Theory of Value," by the same author.
9. Among other noteworthy contributions to the discussin of this theme I would mention Patten's "Theory of Dynamic Economics" 1892; also a paper by the same writer in a recent number of the Annals of the American Academy on "Cost and Expense." Patten takes a position which in the main is not far from that of the Austrian economists. His point of view is, however, peculiar, in that he throws special emphasis upon the influence of consumption upon the value of goods. This is a special theme which lies outside of the province of this paper. It still remains to notice the work of Irving Fisher ("Mathematical Investigations in the Theory of Value and Prices"), Connecticut Academy, 1892; also a very able work of Benini ("Il vaaore e la sua attribuzione ai beni strumentali"), Bari, 1893. The views of the Austrian economists ahve found very able and because of many original features very interesting statement, at the hands of W. Smart ("Introduction to the Theory of Value", London, 1891)>
10. "Elements" vol. i, p. 214. Compare especially the enumeration of the elements of cost on p. 217.
11. In his paper, "Bohm-Bawerk on Value and Wages," pages 27 and 28,
NOTES:
1. The name, given us by our opponents, includes a certain group of theoretic economists. Not all of those included are Austrians, nor does the group include all the Austrian economists. I would also take occasion to remark that when in the following I speak in the name of the Austrian economists, I do not wish that anyone else shall be held responsible for what I may say or for the manner of saying it. Conversely I do not wish to place myself in the position of being responsible for the statements of every member of that group. Again, while I have given statement to certain general doctrines of the Austrian economists, yet I would expressly state that the kernel of the doctrine does not belong to me, but is, to a large degree, the outcome of the investigations of my able colleagues, especially Menger and Wieser.
2. Wieser's "Ursprung und Haupigeselze des Wirtschaftlichen Wertes." Wien, 1884, p. 104. Then my "Grundzage der Theorie des Wirthshaftlichen Guterwertes, in Conrad's Jahrbucher fur Nat-Oek. N.F.B. XIII, 1886, p. 42. Then my article, "Wert" in Conrad-Lexischen Handworterbuch der Staatswissenschaften.
3. Essay on the "Wertheorien und Wertgesetze," in Conrad's Jahrbucher, N.F.B. XVI.
4. "Ultimate Standard of Value," Yale Review, November, 1892.
5. Die Classiche Wettheorie und die Theorie vom Grenznutzin," Conrad's Jahrbucher. "Zur classichen Wert und Preistheorie" N.F., Vol. 20, in the same Jahrbucher, third edition, Bd. 1.
6. "Bohm-Bawerk on Value and Wages," in the Quarterly Journal of Economics, October, 1890; also "Marginal Utility and Value," in the same journal, April 1893. Near the completion of the present paper,a third paper by Professor Macvane came to hand, "The Austrian Theory of Value," Annals of the American Academy, November, 1893.
7. "Principles of Economics", London, 1890 (second edition, 1891) and "Elements of Economics of Industry", London, 1892. passim.
8. A very able criticism of my "Positive Theory of Capital", in the Economic Journal, June 1892, page 328. Also in the same number a criticism of Smart's "Introduction to the Theory of Value," by the same author.
9. Among other noteworthy contributions to the discussin of this theme I would mention Patten's "Theory of Dynamic Economics" 1892; also a paper by the same writer in a recent number of the Annals of the American Academy on "Cost and Expense." Patten takes a position which in the main is not far from that of the Austrian economists. His point of view is, however, peculiar, in that he throws special emphasis upon the influence of consumption upon the value of goods. This is a special theme which lies outside of the province of this paper. It still remains to notice the work of Irving Fisher ("Mathematical Investigations in the Theory of Value and Prices"), Connecticut Academy, 1892; also a very able work of Benini ("Il vaaore e la sua attribuzione ai beni strumentali"), Bari, 1893. The views of the Austrian economists ahve found very able and because of many original features very interesting statement, at the hands of W. Smart ("Introduction to the Theory of Value", London, 1891)>
10. "Elements" vol. i, p. 214. Compare especially the enumeration of the elements of cost on p. 217.
11. In his paper, "Bohm-Bawerk on Value and Wages," pages 27 and 28,