448 lotka: objective standard of value 



thus determine, not the 'Hrue" or "objective" values in exchange ■ 

 V, but the subjective values in exchange 



^j - Vj + e = :^ + 6 (24) 



where e may be regarded as a measure of the ''error" of the sense 

 of values of the representative individual in determining the value 

 (per unit mass) of the commodity A-,. 



If we now make the assumption that e is as a rule a small 

 quantity, so that for purposes of rough estimation we may neglect 

 it, and write 



- — =Vj=?jj (2o) 



our problem is solved, all but for the determination of a constant 

 factor; the uncertainty which thus remains is due to the fact that 

 our representative individual is able to indicate only the ratio v-, : 



Vj and hence :r— : :r — for any two commodities Aj and Aj, but 



0?7Zj OTTlj 



is unable to give us any information regarding the absolute value 



of c — for any commodity. 



We can, however, remove also this last remaining uncertainty: 

 From (22) we see that in the objective system a conmiodity has 

 unit value per unit quantity if 



-^^ = 1 (26) 



dg 



On the other hand, according to our agreement regarding the 

 measurement of labor per unit of time (see page 413 and equa- 

 tion 5), we see that the unit of labor per unit of time has unit 

 negative value, since by (5) and (22) 



^^ ^^ = _ 1 =v, (27) 



dL dL 



This completely determines the unit of value if the unit of 

 labor per unit of time is given, or vice versa. We are at liberty 



