Nothing is more useful than water: but it will scarcely purchase anything barely anything can be had in exchange for it. The things which have the greatest value in use have frequently little or no value in exchange and, on the contrary, those which have the greatest value in exchange have frequently little or no value in use. The one may be called ‘value in use ’ the other, ‘value in exchange’. The word VALUE, it is to be observed, has two different meanings, and sometimes expresses the utility of some particular object, and sometimes the power of purchasing other goods which the possession of that object conveys. These rules determine what may be called the relative or exchangeable value of goods. “What are the rules which men naturally observe in exchanging them either for money or for one another, I shall now proceed to examine. After Introduction, the second section explores the original two paradoxes discussed by Smith, the third section lays out the empirical evidence, while the last section discusses the conclusion of the paper. This article is divided into four sections. To understand this real-world problem in the light of Smith’s second discussion of the paradox (LJ (A), 176–177 LJ (B), 496, 575), the land acquisition cases at Singur and Salboni, West Bengal, India, are taken as a source of empirical data.
DIAMOND AND THE SOUND OF A GUNSHOT NEGOTIATION PROFESSIONAL
Therefore, these conflicts can be problematised as our inability to understand how real-world valuation works or how individuals in everyday lives, without professional valuation training to conduct the valuation of land. Since compensation is linked to the valuation of land, there are differences between the valuation of land conducted by professional valuers and individuals whose lands are expropriated. Often in these cases, the affected population does not receive adequate compensation. Their anxiety and exploitation have led to many conflicts in India (Pellissery and Dey Biswas 2012 Chakravorty 2013) and in the Global North–South (Bunkus and Theesfeld, 2019 Borras and Franco, 2012). This massive recent acquisition and future prospects have triggered a lot of anxiety and fear among the people who rely on small plots of land for their survival. an area greater than the size of India, will be acquired to be used for large-scale investments (Deininger et al. Throughout the world, 445 million hectares of land, i.e. The recently acquired land in low- and middle-income countries might be as much as forty-two million hectares (Nolte et al. Here, the importance of actual negotiation between potential buyers and sellers becomes a source of introspection and questioning of what we think we know about the real-world valuation process.īecause of the need for infrastructure expansion and industrialisation, land acquisition has increased substantially in recent years, globally. It deals with the often-ignored second discussion of the paradox which explores how the price of anything, including but not restricted to land, is dictated by the “fortunes of the bidder” (LJ (A), 176–177 LJ (B), 496, 575). This paper investigates, theoretically and empirically, the two discussions on the diamond-water paradox (see below). While one paradox became the foundation of all modern theories on value ( first discussion), the other one went into oblivion ( second discussion). He discussed the paradox twice in his writing. In this book, Smith borrowed the classic example of the diamond-water paradox to explain his understanding of valuation. The modern theories and practice find their roots in Adam Smith’s The Wealth of Nations ( 1776/1981). The valuation of land has been theorised and experimented with immensely over time in India (Thapar 2002). The feeling of dissatisfaction and injustice raises the question of legitimacy of valuation methods and in extreme cases triggers violent conflicts (Chakravorty 2013). In this time of imprecise valuation of land, neither the market (buyers, sellers, and developers), nor the state, nor the citizens have the sense of justice being delivered. As a result, neither the state, nor the market, nor the citizens feel that the processes and outcomes of valuations of land are adequate and just (Alterman 2012 Dey Biswas 2020b, c). 2014 Balakrishnan 2019 Pellissery & Lødemel 2020).
![diamond and the sound of a gunshot negotiation diamond and the sound of a gunshot negotiation](https://cdn.theatlantic.com/thumbor/jxDbfR7LQDU8RbRamIojVGcWtG8=/502x0:3502x2250/1200x900/media/img/mt/2019/08/Sealand/original.jpg)
In the Global South, to expand urbanisation, infrastructure development, and industrialisation, a vast area of land has been transferred from one use to another (Pellissery et al. Land is one such property that has immense socio-political significance.
![diamond and the sound of a gunshot negotiation diamond and the sound of a gunshot negotiation](https://static.timesofisrael.com/www/uploads/2022/02/F220228OF24.jpg)
from everyday groceries to life-saving drugs). We conduct valuations every day, sometimes to choose between whether to have a coffee or an ice cream, and at other times to decide whether to buy this piece of property or that piece of property (e.g.