We come to see Muller's theory in detail. The core of his theory of value theory or relative price theory is that he believes that the purpose of value theory is to explain relative prices. Value is based on a constant measure of value. In fact, most of the time we judge that value is relative value rather than absolute value, and supply and demand are also established under specific circumstances. For a person, the same goods are “differently perceived” and the value is different.
Because of this, we choose a framework based on behavioral economics to explain value. The value of a specific object depends on the following three assumptions:
第一, the value of a specific object to a certain Individuals are inconsistent and even inconsistent to the same individual in different scenarios, so the value cannot be judged at a simple price.
Second, the judgment of the individual affects the value of the value, more accurately, the individual's cognitive ability affects the value. For a digital currency or stock of a blockchain, different people will make differentiated bids due to differences in cognitive ability, and the price in this scenario becomes a standard reflecting individual cognitive ability. Through the study of brain science, we know that the individual's intelligence and cognitive ability are bounded, and the behavioral consequences of this boundary are decision-making or judgment.
third, cognition depends on ability, your cognitive ability makes you get different information, and therefore makes different judgments, which leads to differences in individual decision-making. While neoclassical economics assumes that everyone's cognitive abilities are almost the same, we use a model based on Simon's behavioral economics to understand the difference in value judgments in real situations, and therefore recognize that each person's abilities are different.