subjective value theory

Subjective value theory suggests that the worth of a good or service is determined by an individual's personal preferences, feelings, and circumstances, rather than any inherent or fixed property. In other words, what something is worth varies from person to person based on how much they value it in that moment, influenced by factors like need, desire, and context. This explains why different people might assign different values to the same item, and how perceived value can change over time or in different situations. It highlights the personalized and dynamic nature of value in economic decision-making.