Relative Theory of Utility and Value

It is justified in a previous paper published in Economic Thought Journal that along with the theory of marginal utility, which is dominating the contemporary economic thought, a theory of marginal value, of equal worth to it, should be developed, and its starting points have been outlined. This paper proposes the development of a relative theory of utility and value, which gives the opportunity to unite the utility and the value, as well as the marginal utility and the marginal value in a common non-contradictory microeconomic theory, that is absolutely compatible with the modern economics. The above is achieved by introducing relative utilities and relative value units, which are quite specific for each individual, but they are compatible among themselves within the framework of his/her subjective economic behaviour. Points of the individual’s value economic equilibrium are deduced on this basis, which become starting ones for a fundamental microeconomic analysis.