[OPE-L:4697] Re: value vs potential value

Michael Perelma (michael@ecst.csuchico.edu)
Wed, 9 Apr 1997 14:54:36 -0700 (PDT)

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Michael Williams wrote:
> I think the issue is as to *why* the value is 4. IM (value-form)O the value
> of the hat is not quantitatively determined until it (and the labour that
> produced it) is socially validated by it successfully entering market
> exchange as a commodity.

My point about semantics was meant to suggest that the value can be
determined before the sale, even though the participants may not be
aware of the final value until it is validated on the market.

> >
> > To follow Mike L's suggestion all the way would lead us to a subjective
> > theory of value.
> I think not - value is socially not subjectively determined.
Let us say that 5 units of abstract labor go into the commodity, but
people are only willing to pay 4. That perspective leads to a
subjective interpretation of value following the idea about social
validation at the time of sale.

>From the labor theory of value perspective, some producers might waste
labor by producing stuff for which nobody is willing to pay the
equivalent of its value. These outliers are trivial. They happen but
the mistakes help to guide producers to keep values in line with what
the commodities can get in the validation process.

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu