An entropy theory of value

Jing Chen

Structural Change and Economic Dynamics, 2018, vol. 47, issue C, 73-81

Abstract: From the properties that the value of commodities should satisfy, it can be derived that the onlymathematical formula to represent value, as a function of scarcity, is the entropy function. From this function, the main factors that influence the value of a commodity are scarcity of the commodity, the number of producers, and the market size. In particular, monopolies and near monopolies, which have small number of producers or service providers, have high valuations. Many of the important institutional structures, such as religions, governments, unions, patents and regulations, obtain high valuation through monopoly.

Keywords: Value; Entropy; Information; Scarcity; Utility; Labor (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:47:y:2018:i:c:p:73-81

DOI: 10.1016/j.strueco.2018.07.008

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