Towards a paradigm on the value

Figures & data

Figure 1. Smith’s model.

Source: Nicholson and Snyder (2014).

Figure 2. Ricardo’s model.

Source: Nicholson and Snyder (2014).

Figure 3. Marshall’s model.

Source: Nicholson and Snyder (2014).

Figure 4. Value creation perspective.

Source: Adapted from Grӧnroos and Voima (2012), Trinh (2014b).

Figure 5. The GDP approach for industry i.

Source: Trinh (2017a).

Table 1. Parameters of the value creation system

Parameters	Production		Consumption
	Sign	Value	Sign	Value
Total factor productivity	A1	1	A2	1
Unit cost of capital	wK1	10	wK2	3
Unit cost of labor	wL1	3	wL2	1
Output elasticity of capital	α1	0.6	α2	0.2
Output elasticity of labor	β1	0.4	β2	0.8

Table 2. Simulation results of the system

Approaches	Profit maximization	Utility maximization	Value maximization
K1	16.15	21.60	17.97
L1	35.89	48.00	39.92
K2	3.04	4.07	3.39
L2	36.53	48.86	40.64
Q	22.23	29.73	24.73
v	22.33	20.08	21.58
p	16.55	15.05	16.05
П	98.80	87.54	97.55
U	82.74	88.37	85.86
V	181.54	175.91	183.41

Figure 6. Value balance between the firm and the customer.

Source: Trinh (2017b).

Figure 7. Market demand.

Source: Trinh (2014a).

Figure 8. Market supply.

Source: Trinh (2014a).

Figure 9. Market equilibrium.

Source: Trinh (2014a).

Nicholson, W., & Snyder, C. M. (2014). Intermediate microeconomics and its application. Boston: Cengage Learning.

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Grӧnroos, C., & Voima, P. (2012). Making sense of value and value co-creation in service logic. Helsinki: Hanken School of Economics .

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Trinh, T. H. (2014b). Value concept and economic growth model. Journal of Economic & Financial Studies, 2(6), 62–71.10.18533/jefs.v2i04.97

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Trinh, T. H. (2017a). A primer on GDP and economic growth. International Journal of Economic Research, 14(5), 13–24.

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Trinh, T. H. (2017b). Value balance and general equilibrium model. International Journal of Economics of Financial Issues, 7(2), 485–491.

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