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The Lafayette Law of Value

I've been saying this for years, and commented on various 'blogs etc with this argument. It is well about time that I stated it in a single post.

Value is objective in supply.
Value is subjective in demand.
Value is intersubjective in price.

That's the Lafayette Law of Value. Thank you.

I was deliberately aiming for brevity :)But in short, the objective theories of value suggest intrinsic value of economic good, of which Smith-Ricardo-Marx labour theory of value is the most famous (basing opportunity cost of labour-time as the main value). The subjective theories of value argue "value is determined by the importance an acting individual places on a good for the achievement of his desired ends".In my considered opinion, both are partially correct, depending on whether one is looking at the production process or the consumption process. Elaborations on the Lafayette Law of Value would, of course, include elasticity, shifts etc. But they are more of the realm of economic science rather than philosophy of economics.

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