IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2308.07185.html
   My bibliography  Save this paper

The Cycle of Value The Cycle of Value -- A Conservationist Approach to Economics

Author

Listed:
  • Nick Harkiolakis

Abstract

A representation of economic activity in the form of a law of conservation of value is presented based on the definition of value as potential to act in an environment. This allows the encapsulation of the term as a conserved quantity throughout transactions. Marginal value and speed of marginal value are defined as derivatives of value and marginal value, respectively. Traditional economic statements are represented here as cycles of value where value is conserved. Producer-consumer dyads, shortage and surplus, as well as the role of the value in representing the market and the economy are explored. The role of the government in the economy is also explained through the cycles of value the government is involved in. Traditional economic statements and assumptions produce existing hypotheses as outcomes of the law of conservation of value.

Suggested Citation

  • Nick Harkiolakis, 2023. "The Cycle of Value The Cycle of Value -- A Conservationist Approach to Economics," Papers 2308.07185, arXiv.org.
    • Handle: RePEc:arx:papers:2308.07185
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2308.07185
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thorstein Veblen, 1909. "The Limitations of Marginal Utility," Journal of Political Economy, University of Chicago Press, vol. 17(9), pages 620-620.
    2. Rabin, Matthew, 1990. "Communication between rational agents," Journal of Economic Theory, Elsevier, vol. 51(1), pages 144-170, June.
    3. Dirk Bergemann & Alessandro Bonatti & Tan Gan, 2022. "The economics of social data," RAND Journal of Economics, RAND Corporation, vol. 53(2), pages 263-296, June.
    4. Jennifer Murtazashvili & Ilia Murtazashvili, 2020. "Wealth-destroying states," Public Choice, Springer, vol. 182(3), pages 353-371, March.
    5. Duncan K. Foley, 2000. "Recent Developments in the Labor Theory of Value," Review of Radical Political Economics, Union for Radical Political Economics, vol. 32(1), pages 1-39, March.
    6. Morris Altman, 2006. "Human agency and free will: choice and determinism in economics," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 33(10), pages 677-697, October.
    7. Jost, John T. & Blount, Sally & Pfeffer, Jeffrey & Hunyady, Gyorgy, 2003. "Fair Market Ideology: Its Cognitive-Motivational Underpinnings," Research Papers 1816, Stanford University, Graduate School of Business.
    8. Azra Hadziahmetovic & Jasmin Halebic & Nerma Colakovic–Prguda, 2018. "Economic Crisis: Challenge For Economic Theory And Policy," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(4), pages 48-55.
    9. Sylvia Maxfield, 2008. "Reconciling Corporate Citizenship and Competitive Strategy: Insights from Economic Theory," Journal of Business Ethics, Springer, vol. 80(2), pages 367-377, June.
    10. Patterson, Murray, 1998. "Commensuration and theories of value in ecological economics," Ecological Economics, Elsevier, vol. 25(1), pages 105-126, April.
    11. Smith, Vernon L, 1976. "Experimental Economics: Induced Value Theory," American Economic Review, American Economic Association, vol. 66(2), pages 274-279, May.
    12. Veblen, Thorstein, 1909. "The Limitations of Marginal Utility," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 17.
    13. Shiro Horiuchi, 2015. "Emergence and Collapse of the Norm of Resource Sharing Around Locally Abundant Resources," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 18(4), pages 1-7.
    14. Kallis, Giorgos & Gómez-Baggethun, Erik & Zografos, Christos, 2013. "To value or not to value? That is not the question," Ecological Economics, Elsevier, vol. 94(C), pages 97-105.
    15. Benveniste, L M & Scheinkman, J A, 1979. "On the Differentiability of the Value Function in Dynamic Models of Economics," Econometrica, Econometric Society, vol. 47(3), pages 727-732, May.
    16. Xilin Li & Christopher K Hsee & J Jeffrey Inman & Hilke Plassmann, 2021. "The Psychology of Marginal Utility," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 48(1), pages 169-188.
    17. Ennio E. Piano & Louis Rouanet, 2020. "Economic calculation and the organization of markets," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 33(3), pages 331-348, September.
    18. Armin Falk & Ernst Fehr & Urs Fischbacher, 2003. "On the Nature of Fair Behavior," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 20-26, January.
    19. Thomas C. Brown, 1984. "The Concept of Value in Resource Allocation," Land Economics, University of Wisconsin Press, vol. 60(3), pages 231-246.
    20. Roger B. Myerson, 1992. "On the Value of Game Theory in Social Science," Rationality and Society, , vol. 4(1), pages 62-73, January.
    21. Daoud, Adel, 2018. "Unifying Studies of Scarcity, Abundance, and Sufficiency," Ecological Economics, Elsevier, vol. 147(C), pages 208-217.
    22. Green, Richard C. & Srivastava, Sanjay, 1986. "Expected utility maximization and demand behavior," Journal of Economic Theory, Elsevier, vol. 38(2), pages 313-323, April.
    23. Ted O'Donoghue & Jason Somerville, 2018. "Modeling Risk Aversion in Economics," Journal of Economic Perspectives, American Economic Association, vol. 32(2), pages 91-114, Spring.
    24. Lewin, Peter & Phelan, Steven E, 2000. "An Austrian Theory of the Firm," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 13(1), pages 59-79, February.
    25. Ayman Reda, 2018. "Prophecy, Piety, and Profits," Palgrave Studies in Islamic Banking, Finance and Economics, Palgrave Macmillan, number 978-1-137-56825-0, December.
    26. Anyanwu, Ugochukwu Michael & Anyanwu, Amarachukwu Anthony & Cieślik, Andrzej, 2021. "Does abundant natural resources amplify the negative impact of income inequality on economic growth?," Resources Policy, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dieter Bögenhold, 2008. "Economics, Sociology, History: Notes on Their Loss of Unity, Their Need for Re-integration and the Current Relevance of the Controversy between Carl Menger and Gustav Schmoller," Forum for Social Economics, Taylor & Francis Journals, vol. 37(2), pages 85-101, January.
    2. Blind, Georg, 2015. "Behavioural rules: Veblen, Nelson-Winter, Oström and beyond," MPRA Paper 66866, University Library of Munich, Germany.
    3. Tae-Hee Jo, 2021. "A Veblenian Critique of Nelson and Winter’s Evolutionary Theory," Journal of Economic Issues, Taylor & Francis Journals, vol. 55(4), pages 1101-1117, October.
    4. Atsebi, Jean-Marc Bédhat & Ferrer-i-Carbonell, Ada, 2019. "Relative Deprivation in Tanzania," IZA Discussion Papers 12719, Institute of Labor Economics (IZA).
    5. Annie Tubadji & Brian Osoba & Peter Nijkamp, 2015. "Culture-based development in the USA: culture as a factor for economic welfare and social well-being at a county level," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(3), pages 277-303, August.
    6. Naoise McDonagh, 2021. "Credit Guidance for a Desired Economy: An Original Institutional Economics Critique of Financialization," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 675-693, December.
    7. Atsebi, Jean-Marc Bédhat & Ferrer-i-Carbonell, Ada, 2022. "Relative deprivation in Tanzania: Relative concerns and empathy," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 389-408.
    8. Jérémy Celse, 2009. "Will Joe the Plumber envy Bill Gates? The impact of both absolute and relative differences on interdependent preferences," Working Papers 09-26, LAMETA, Universtiy of Montpellier, revised Dec 2009.
    9. Rickardsson, Jonna & Mellander, Charlotta, 2017. "Absolute vs Relative Income and Life Satisfaction," Working Paper Series in Economics and Institutions of Innovation 451, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    10. Fuzhong Chen & Xin Du & Wenting Wang, 2023. "Can FinTech Applied to Payments Improve Consumer Financial Satisfaction? Evidence from the USA," Mathematics, MDPI, vol. 11(2), pages 1-17, January.
    11. Anna Klimina, 2019. "Opening Up Possibilities: Limiting Particularism and Welcoming Convergence on Socially Progressive Goals," Journal of Economic Issues, Taylor & Francis Journals, vol. 53(2), pages 448-455, April.
    12. Hager, Sandy Brian, 2013. "Public Debt, Ownership and Power: The Political Economy of Distribution and Redistribution," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 157991, July.
    13. K.Vela Velupillai, 2014. "One Hundred Years Ago - Economic Theory in 1914," ASSRU Discussion Papers 1408, ASSRU - Algorithmic Social Science Research Unit.
    14. Vernon L. Smith, 2003. "Constructivist and Ecological Rationality in Economics," American Economic Review, American Economic Association, vol. 93(3), pages 465-508, June.
    15. Ligang Song & Chérie Simpson, 2018. "Linking “adaptive efficiency” with the basic market functions: A new analytical perspective for institution and policy analysis," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(3), pages 544-557, September.
    16. Juan José García del Hoyo & Celeste Jiménez de Madariaga, 2015. "Teorías del valor: coincidencias y divergencias en la economía y la antropología social," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(33), pages 109-131, July-Dece.
    17. Maria Otil & Monica Boldea, 2015. "Regional Disparities – Historical Cultural Influences And Regional Development In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 74-83, August.
    18. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
    19. Senik, Claudia, 2004. "When information dominates comparison: Learning from Russian subjective panel data," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2099-2123, August.
    20. Marwil J. Dávila-Fernández & Serena Sordi, 2019. "From open economies to attitudes towards change. Growth and institutions in Latin America and Asia," Department of Economics University of Siena 809, Department of Economics, University of Siena.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2308.07185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.