Subjective Value | Scale of Vlaues

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Value judgments express preferences of the acting individual. Action is aimed at the substitution of one state of affairs for another. One may prefer a sunny sky to a cloudy sky. However, the cloudy sky can’t be substituted for the sunny sky. This is irrelevant to economics. Saying one prefers A to B is also meaningless. The individual may have a reason to lie. We can’t see preferences until the individual acts.

A stated value is academic. The stated value can also be harmful. Values are based on substituting one state of affairs for another. This is not to say every action will be successful. The acting individual can make a mistake, but it was believed to be correct by that individual at the time of action. If the individual didn’t think it was correct, the action never would have been taken. Correct based on the individual subjective valuation. He believed the action would improve his state of affairs.

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