Bibliographic Details
| Title: |
The Problem of Cost. A Proposal for a Phenomenologicallybased Synthesis. |
| Authors: |
POŠVANC, MATÚŠ1 |
| Source: |
Cosmos + Taxis. 2024, Vol. 12 Issue 7/8, p65-89. 25p. |
| Subject Terms: |
*VALUE (Economics), *ECONOMIC structure, COST structure, OPPORTUNITY costs, ECONOMIC opportunities |
| Abstract: |
I am critical of the absence of a coherent theory of costs. I criticize existing cost concepts that define cost externally, through an objectified phenomenon (input price, scarcity of goods, the value/utility of the alternative which is forgone or sacrificed) and similar Böhm-Bawerk´s attempts derived from the value of a marginal product. The critique of the opportunity costs concept, which are regarded as an agent´s economic costs regardless of the fact that they are forever lost in the alternative course of history, is under scrutiny as well. The initial proposal for a modification of the cost theory is presented. The proposal is based on the introduction of the concept of individual utility as a mental structure, called an Idea of Economic Orientation. Agent defines how something should be desirable as well as possible, and thus creates the Idea. It is reflected in reality in the form of an agent’s portfolio of goods. The individual utility is based on a structural coincidence of an Idea as a mental structure with the real economic state of affairs of an agent. I claim that an integral part of the individual utility is the structure of cost, which is reflected in reality as one part of an agent´s portfolio of goods. The cost structure thus has its factual status (recorded by accounting operations), which is at the same time influenced by the opportunistic (counterfactual) consideration of the cost structuring; so, what is contrafactual shapes the factual. The proposal thus enables the synthesis of some vital elements of previous cost theories. [ABSTRACT FROM AUTHOR] |
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| Database: |
Political Science Complete |
