Subjective theory of value

Definition

The subjective theory of value, or theory of subjective value, is a theory of value that states that the worth or value of a good is determined, not intrinsically, but rather, by how useful or valuable people find the good.

The subjective theory of value is to be contrasted with intrinsic theories of value, which are premised on the value being inherent in the goods (an example of an intrinsic theory of value is the labor theory of value commonly associated with Marxian economics).