New perspective on the concept of value: Carl Menger

The interest on liberal Tradition has increased through to the end of nineteenth century and Austrian School has come in to refreshment period. The work of Carl Menger who is the founder of Austrian School, named Principles of Economics has brought a new point of view the value which based on marginal utility. Menger explains the value in terms of the benefit that is provided by it and places the individuals to the center of his analysis. Methodological indivdualism is the basic origin point of Menger?s analysis. By subjective theory of value, value is being measured in terms of the benefit that is provided to the individual not by the labour it contains. The followers like Böhm-Bawerk and Wieser who constitue the first generation of Austrian School developed Menger?s theory. Austrian School is still active with the sixth generation writers in some universities and institutes.The aim of the study is to analyze Carl Menger?s criticism about Classical School and the new point of view in the transition to the subjective theory of value from the objective theory of value which has mostly academical environment for appraximately century.Key Words1.Carl Menger2.Subjective Theory of Value3.Austrian School4.Value Theory5.Marginalism