Abstract

This paper critically analyses the strongly subjectivist approach to exploitation theory proposed by Matsuo on this journal, in general convex economies with heterogeneous agents. It is proved that the Fundamental Marxian Theorem is not preserved and that no meaningful subjectivist exploitation index can be constructed. A minimal objectivism is necessary in exploitation theory, whereby subjective preferences do not play a direct, definitional role. An objectivist approach related to the ‘New Interpretation’ is proposed which captures the core intuitions of exploitation theory, provides appropriate indices of individual and aggregate exploitation, and preserves the Fundamental Marxian Theorem in general economies.