What Is Utility Value?

Utility theory of value An economic theory that explains the value and its formation process by the ability of an article to satisfy human desires or the subjective psychological evaluation of the utility of an article by a person. It is the opposite of labor theory of value. Before the 1960s, it was mainly expressed as general utility theory, and since the 1870s, it was mainly expressed as marginal utility theory. ^[1]

Utility value theory

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The theory of utility value in the first half of the 17th to 18th centuries

The theory of marginal utility value reflects the further implementation of positivism in economics. As an important part of the general theory of economics, the marginal analysis method, partial equilibrium and general equilibrium analysis, and the use of mathematical methods are widely used in economics. ^[3]

Marx analyzed the nature of utility and its economic significance. He refuted the claims of some economists that use value had no effect. Marx pointed out that the usefulness or utility of items that constitute the material content of wealth and do not reflect social production relations does not belong to the scope of political economy. However, "once the use value changes due to modern production relations, or it itself affects modern The relations of production and the morphological changes are within the scope of political economics "(Complete Works of Marx and Engels, Vol. 46, Vol. 2, p. 411). Marx's research on utility was derived from the analysis of a certain economic structure, and gradually deepened with the development of his entire theoretical analysis, becoming an organic part of his analysis of the movement of commodity production and capitalist production mode. Regarding the economic role of utility, Marx believes that, of course, it cannot play a role in value, but in addition, it plays an important role. For example: use value is the material bearer and manifestation of value; use value of labor goods is the source of value; use value is an important condition for the process of capital circulation; use value also plays an important role in the process of social reproduction; supply and demand Regulate the fluctuation of market prices; social demand for use value is a prerequisite for determining the market value of commodities, etc. Marx's analysis has guiding significance for further studying the nature, function and movement laws of social needs.