The Service Theory of Value

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Indeed, services, and not the things these services supply, are the real utilities, in a certain sense the real products, with which we have to deal in every contemplated exchange. That is to say, it is in the relative utility for each, of the services involved in the transaction, and not in the relative utility for each, of the things these services supply, that we find the meas- ure of loss or gain that dominates the terms of every exchange.
Thus, regardless of the relative utility of the thi
...ngs parted with and acquired through the instrumentality of an exchange of services, the gain resulting from the transaction will equal the cost-discomfort averted by the service in our behalf, minus the cost-discomfort imposed upon us by our rendition of the compensatory service.
If, however, through error in judgment, the cost- discomfort imposed upon us by the rendition of a com- pensatory service exceeds the cost-discomfort averted by the service in our behalf, we shall lose by the transac- tion, even though the thing acquired through such ser- vice has utility a hundred, or, for that matter, a thou- sandfold greater than the utility of the thing parted with.


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