Which concept represents a price determined in a voluntary exchange?

The concept that represents a price determined in a voluntary exchange is fair market value. This term refers to the price that a willing buyer and a willing seller agree upon in a market where both parties have reasonable knowledge of the relevant facts. It implies a fair negotiation process and reflects the consensus on value in open market conditions without coercion.

Fair market value is crucial in various contexts, such as property sales, appraisals, and taxation, as it ensures that the price is established through mutual agreement based on prevailing market conditions. This concept contrasts with intrinsic value, which pertains to the inherent worth of an asset based on its fundamental characteristics rather than market dynamics, and subjective value, which is based on individual preferences and perceptions rather than a market consensus. Public interest value refers to the broader societal considerations that may influence the perceived worth of an asset or resource, often not tied directly to voluntary exchanges between buyers and sellers.