Intrinsic theory of value

An intrinsic theory of value (also called theory of objective value) is any theory of value in economics which holds that the value of an object, good or service, is intrinsic or contained in the item itself. Most such theories look to the process of producing an item, and the costs involved in that process, as a measure of the item's intrinsic value.

The labour theory of value is an example of an intrinsic theory that was originally proposed by Adam Smith and further developed by David Ricardo and Karl Marx. Similarly the Physiocrats based their theory of value in the land.