COST OR VALUE IN THE MODERN CONCEPTS FOR THE PRICE

  • Borislav Atanasov

Abstract

The price, by its nature, reflects the divergent interests of the market participants (producers, traders and consumers). While the producers and traders are striving for sell at the highest possible price, the consumers are looking for comparatively the lower price. A great number of definitions from different directions of the scientific economic schools during the centuries are generated by the dual nature of the price. The definitions for the price give a reason two modern directions in the concept for the price to be differentiated. The first one stresses on the cost as an amount of money paid by the consumers. The second direction in the modern concepts for the prices stresses on the value (respectively, the utility), obtained in the process of consumption. Nowadays, the value takes a central place in the modern concepts for the price because it defines the upper price limit which the consumers are ready to pay. In this regards, the so-called ingredient theory for the value – a generalized theory for the value and the utility take a central place in the modern economic science.

Published
2020-01-31