Extrinsic Value


Also found in: Wikipedia.

Extrinsic Value

The value of an asset that occurs by mutual agreement. Fiat money, for example, has value because everyone in an economy agrees that it has value, even though the paper on which it is printed does not have any more value than other paper. The line between extrinsic and intrinsic value is sometimes blurry.
References in periodicals archive ?
Examples of extrinsic value statements from the PVCT include "increases salary" and "promotes recognition from peers.
It is argued that high level of compliance would give more intrinsic and extrinsic value to the customers.
A summary economic analysis of the AMEDD's graduate program indicates that substantial net extrinsic value and intrinsic value are generated by these programs individually and in the aggregate.
labeled pay, medical benefits, and promotions as extrinsic outcomes explaining that extrinsic outcomes "have extrinsic value when they are distinct from the individual and obtain their worth only through some external contingency" (2010: 289).
Stuart maintains synergy between interior architecture and interior design, which ultimately increases the intrinsic and extrinsic value of a property or space.
Selling options works great when your able to catch these spikes in volatility because when volatility lifts like it is now, it only affects the extrinsic value of an option.
Today's consumers tend to focus on the extrinsic value of a product, including its design and branding.
Dodd-Frank talks about identifying financial contracts, defining them as "a legally binding agreement between two or more counterparties, describing rights and obligations relating to the future delivery of items of intrinsic or extrinsic value among the counterparties.
A sampling of terms defined includes: active premium, aggregation, angel financing, asset allocation, backwardation, benchmark, bridge loan, capital structure arbitrage, coefficient of determination, commodity option, convertible arbitrage, deferred futures, discretionary trading, distressed debt, enumerated agricultural commodities, extrinsic value, follow-on funding, hedge ratio, interdelivery spread, long short equity, modified value-at-risk, offshore fund, piggyback registration, social entrepreneurship, systematic trading, tracking error, underlying futures contract, venture capital method, and weather premium.
For instance, Egonsson makes the well-known distinction between intrinsic and extrinsic value, and argues that there is a further distinction between weak and strong intrinsic value.
It is typical for storage capacity holders to pay, through contract rates, the full intrinsic value of storage capacity in addition to 30-50% of estimated total extrinsic value, depending on the location and other market variables.