ABSTRACT
This chapter explains the classical theory of value had its origin in the natural law doctrine that labour is the legal ground of property. This view had originally little to do with a psychological interpretation. It concerns the possibility of constructing social value judgements on the foundations provided by marginal utility theory, this orientation makes Jevons's theory a good starting-point. The subjective theory of value is built upon this simple hedonistic argument. Although the distinction between hedonism and utilitarianism is maintained in the subjective theory of value, which is intended to form the basis for the theory of price formation, every practical. The subjective theory of value starts with assumption that interpersonal comparisons of pleasure and pain are impossible. The general philosophical elaboration of marginal utility theory has been carried out by theory of welfare economics and, in v. Wieser's and J. B. Clark's theories of social value, as well as in the earlier German theory of 'social use-value'.
