RELATIVE VS ABSOLUTE WORTH

Abstract The determination of priorities based on relative rather than absolute worth is sometimes questioned. This is surprising since it is commonly accepted that economic value is dependent on scarcity, and scarcity is by its very nature a relative property. This paper illustrates that when deriving priorities, relative worth is usually more appropriate than absolute worth, even though the results may sometimes seem counterintuitive. This paper also examines problems that can transpire if absolute rather than relative worth is used in situations where additional alternatives are subsequently introduced into an analysis.