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- Title
A GENERAL ASSESSMENT ON THE ROLE OF OPPORTUNITY COST IN DECISION MAKING UNDER RISK AND UNCERTAINTY.
- Authors
CELIK, Erhan
- Abstract
Consumer needs are unlimited, but resources are limited. Therefore, satisfying one wish means not satisfying the other wish. The most valuable alternative that we have to give up for a sure choice or behavior is the opportunity cost of that choice or behavior. Economists argue that before a rational individual chooses an option, he/she will consider the opportunity cost, which is the highest value alternative that he/she must give up to pursue that option. However, many experimental studies have proven that people's chooses are not always rational for risk and uncertainty. This study evaluates the role of opportunity cost in decision-making under risk and uncertainty.
- Subjects
ENDOWMENT effect (Economics); DECISION making; OPPORTUNITY costs; PROSPECT theory; ECONOMIC activity; BEHAVIORAL economics
- Publication
Turkuaz International Journal of Socio-Economic Strategic Research / Turkuaz Uluslararası Sosyo-Ekonomik Stratejik Araştırmalar Dergisi, 2022, Vol 4, Issue 6, p15
- ISSN
2146-2879
- Publication type
Article