The Freedom of Choice in the Monetary Behavior

Abstract

This study focuses on the subjective value of money as a condition for the buyer's free choice of available goods and services. It is hypothesized that the inherent ease and variety of potential exchanges provided by money represent a special value to the holder. Thus, the hypothesis is formulated that money embodies the materialized possibility of free choice, which can be empirically measured. Using the jointly developed methodology "Money-Goods-Delta," an attempt was made to capture the hypothetical difference between the subjective value of money and the average price of goods purchased with that money. This difference is designated by the letter "delta" (∆) and is described as the "surplus value of money," indicating the value of the freedom to choose goods from many options. As a result of the study, four groups of subjects were identified, differing in their resolution of the "goods or money" dilemma. Analyzing the determinants of the added value of money is of interest for further research.