Editing Value theory (section)

=== Economics ===
{{main|Economics}}
Economics is a [[social science]] studying how goods and services are produced, distributed, and consumed, both from the perspective of individual agents and societal systems.<ref>{{multiref | {{harvnb|Pape|2000|p=[https://books.google.com/books?id=fYzMz3UlyaMC&pg=PA7 7]}} | {{harvnb|Welch|Welch|2009|p=[https://books.google.com/books?id=O5i-d3thv-4C&pg=PA4 4]}} | {{harvnb|Mukherjee|Mukherjee|Ghose|2013|p=[https://books.google.com/books?id=iVKja7n06iIC&pg=PA17 17]}} }}</ref> Economists view evaluations as a driving force underlying economic activity. They use the notion of [[economic value]] and related evaluative concepts to understand decision-making processes, resource allocation, and the impact of policies. The economic value or benefit of a [[commodity]] is the advantage it provides to an [[economic agent]], often measured in terms of what people are [[Willingness to pay|willing to pay]] for it.<ref>{{multiref | {{harvnb|Pirgmaier|2021|p=1}} | {{harvnb|Young|Loomis|2014|p=[https://books.google.com/books?id=brDcAwAAQBAJ&pg=PA289 289]}} | {{harvnb|Turner|Georgiou|Clark|Brouwer|2004|p=[https://books.google.com/books?id=coz0lmhjZAYC&pg=PA50 50]}} }}</ref>

Economic theories of value are frameworks to explain how economic value arises and which factors influence it. Prominent frameworks include the classical [[labor theory of value]] and the neo-classical [[marginal theory of value]].<ref>{{multiref | {{harvnb|Pirgmaier|2021|pp=1, 8–9}} | {{harvnb|Ayres|2023|p=[https://books.google.com/books?id=GW28EAAAQBAJ&pg=PA104 104]}} }}</ref> The labor theory, initially developed by the economists [[Adam Smith]] and [[David Ricardo]], distinguishes between [[use value]]—the utility or satisfaction a commodity provides—and [[exchange value]]—the proportion at which one commodity can be exchanged with another.<ref>{{multiref | {{harvnb|Pirgmaier|2021|p=2}} | {{harvnb|Fraser|2009}} | {{harvnb|Rogers|Castree|Kitchin|2013}} }}</ref> It focuses on exchange value, which it says is determined by the [[Socially necessary labour time|amount of labor required to produce the commodity]]. In its simplest form, it directly correlates exchange value to labor time. For example, if the time needed to hunt a deer is twice the time needed to hunt a beaver then one deer is worth two beavers.<ref>{{multiref | {{harvnb|Pirgmaier|2021|pp=2–3}} | {{harvnb|Ayres|2023|p=[https://books.google.com/books?id=GW28EAAAQBAJ&pg=PA104 104]}} }}</ref> The philosopher [[Karl Marx]] extended the labor theory of value in various ways. He introduced the concept of [[surplus value]], which goes beyond the time and resources invested to explain how [[Capitalism|capitalists]] can profit from the labor of their employees.<ref>{{multiref | {{harvnb|Moseley|2023|p=[https://books.google.com/books?id=43m-EAAAQBAJ&pg=PA48 48]}} | {{harvnb|Pirgmaier|2021|pp=7–8}} }}</ref>

The marginal theory of value focuses on consumption rather than production. It says that the utility of a commodity is the source of its value. Specifically, it is interested in [[marginal utility]], the additional satisfaction gained from consuming one more unit of the commodity. Marginal utility often diminishes if many units have already been consumed, leading to a decrease in the exchange value of commodities that are abundantly available.<ref>{{multiref | {{harvnb|Pirgmaier|2021|p=3}} | {{harvnb|Black|Hashimzade|Myles|2009}} }}</ref> Both the labor theory and the marginal theory were later challenged by the [[Piero Sraffa#Production of Commodities by Means of Commodities|Sraffian theory of value]].<ref>{{harvnb|Ayres|2023|p=[https://books.google.com/books?id=GW28EAAAQBAJ&pg=PA104 104]}}</ref>