Subjective theory of value

Subjective theory of value is a theory that explains why people buy the things they do. It explains that people place different values on different things that they buy. For example, one person might place a high value on a watch, while another person might not think it's worth very much. It also explains that people might think something is worth more or less than it actually costs. For example, one person might think a painting is worth thousands of dollars, even though it only costs thousands.