The role of opportunity costs in future-biased choices

2011 ◽  
Author(s):  
Suzanne Shu
Keyword(s):  
Opportunity Costs

Population Control (Review Article)

1961 ◽  
Vol 1 (3) ◽  
pp. 89-98
Author(s):  
Karol J. Krotki
Keyword(s):  
Population Control ◽  
Review Article ◽  
Small Enterprise ◽  
Opportunity Costs ◽  
Relative Importance ◽  
Factual Information ◽  
Undue Influence ◽  
Clear Cut ◽  
Economic Considerations

Discussions about the role of small enterprise in economic development tend to remain inconclusive partly because of the difficulty of assessing the relative importance of economic and non-economic objectives and partly because of the dearth of factual information on which to base an economic calculus. It is probably true, moreover, that, because of a lack of general agreement as to the economic case for or against small enterprise, non-economic considerations, including some merely romantic attitudes toward smallness and bigness, tend to exert an undue influence on public policies. There may, of course, be no clear-cut economic case. And noneconomic considerations should and will inevitably weigh significantly in policy decisions. If, however, some of the economic questions could be settled by more and better knowledge, these decisions could more accurately reflect the opportunity costs of pursuing non-economic objectives.

scholarly journals Trade Credit and Product Pricing: The Role of Implicit Interest Rates

2020 ◽  
Author(s):  
Niklas Amberg ◽  
Tor Jacobson ◽  
Erik von Schedvin
Keyword(s):  
Interest Rates ◽  
Trade Credit ◽  
Opportunity Costs ◽  
Price Setting ◽  
Firm Characteristics ◽  
Data Set ◽  
Transaction Prices ◽  
Financial Conditions ◽  
Product Pricing

Abstract We empirically investigate the proposition that firms charge premia on cash prices in transactions involving trade credit. Using a comprehensive panel data set on product-level transaction prices and firm characteristics, we relate trade credit issuance to price setting. In a recession characterized by tightened credit conditions, we find that prices increase significantly more on products sold by firms issuing more trade credit, in response to higher opportunity costs of liquidity and counterparty risks. Our results thus demonstrate the importance of trade credit for price setting and show that trade credit issuance induces a channel through which financial conditions affect prices.

Wartime ties and the social logic of crime

2020 ◽  
Vol 57 (4) ◽  
pp. 536-550
Author(s):  
Sarah Zukerman Daly ◽  
Laura Paler ◽  
Cyrus Samii
Keyword(s):  
Criminal Behavior ◽  
Social Ties ◽  
Economic Conditions ◽  
Economic Opportunity ◽  
Opportunity Costs ◽  
Post Conflict ◽  
The Social ◽  
Social Logic ◽  
Original Survey

While ex-combatant reintegration is vital to successful transitions from war to peace, some former fighters turn to crime following demobilization. Such criminality undermines the consolidation of political order. Leading theories of crime participation emphasize the role of both individual economic opportunities and factors related to social ties. Yet, we still know little about the social logic of ex-combatant criminality and how social and economic factors relate as drivers of crime participation. This article presents a theory of how wartime social ties – namely, vertical ties to former commanders and horizontal ties to ex-combatant peers – influence ex-combatant crime on their own and via their relationship to economic opportunity costs. We use the theory to derive predictions in the context of Colombia, and then test them with a combination of administrative data and high-quality original survey data. We find that both vertical and horizontal wartime ties are powerful drivers of ex-combatant criminality. Our evidence indicates that wartime ties mitigate the risks of criminal behavior by facilitating the transmission of criminal capabilities and pro-crime social norms. We do not find that economic conditions moderate the effect of wartime times nor do we find any indication that economic opportunity costs, on their own, predict criminality. These findings underscore the importance of wartime ties – both vertical and horizontal – to understanding post-conflict transitions and designing reintegration interventions.

Eliciting Preferences for Prioritizing Treatment of Rare Diseases: the Role of Opportunity Costs and Framing Effects

2013 ◽  
Vol 31 (11) ◽  
pp. 1051-1061 ◽  
Author(s):  
Arna S. Desser ◽  
Jan Abel Olsen ◽  
Sverre Grepperud
Keyword(s):  
Rare Diseases ◽  
Framing Effects ◽  
Opportunity Costs

scholarly journals The Role of Preferences and Opportunity Costs in Determining the Time Allocated to Housework

2012 ◽  
Vol 102 (3) ◽  
pp. 606-611 ◽  
Author(s):  
Leslie S Stratton
Keyword(s):  
Multivariate Analysis ◽  
Time Use ◽  
Opportunity Cost ◽  
Opportunity Costs ◽  
Household Chores ◽  
Food Shopping ◽  
Time Use Survey ◽  
Cost Of Time ◽  
Necessary Evil

Research on intrahousehold time allocations has assumed that housework is a necessary evil and focused exclusively on the causal role of opportunity costs. In fact, agents likely act to maximize happiness, and preferences regarding even mundane household chores differ considerably. I use information from the 2000-01 UK Time Use Survey to examine time spent on laundry, ironing, cleaning, and food shopping. Joint multivariate analysis of his and her time on weekend and weekday days as well as maid service reveals that her opportunity cost of time matters more than his, but that his preferences play a greater role than hers.

Small Industrial Enterprise In Bombay, Delhi And Karachi (Review Article)

1962 ◽  
Vol 2 (4) ◽  
pp. 433-447
Author(s):  
M. Umer Chapra ◽  
John H. Power
Keyword(s):  
Economic Development ◽  
Review Article ◽  
Small Enterprise ◽  
Opportunity Costs ◽  
Relative Importance ◽  
Factual Information ◽  
Undue Influence ◽  
Clear Cut ◽  
Economic Considerations

Discussions about the role of small enterprise in economic development tend to remain inconclusive partly because of the difficulty of assessing the relative importance of economic and non-economic objectives and partly because of the dearth of factual information on which to base an economic calculus. It is probably true, moreover, that, because of a lack of general agreement as to the economic case for or against small enterprise, non-economic considerations, including some merely romantic attitudes toward smallness and bigness, tend to exert an undue influence on public policies. There may, of course, be no clear-cut economic case. And noneconomic considerations should and will inevitably weigh significantly in policy decisions. If, however, some of the economic questions could be settled by more and better knowledge, these decisions could more accurately reflect the opportunity costs of pursuing non-economic objectives.

Institutional Solutions to the N-Prisoners' Dilemma

1978 ◽  
Vol 72 (2) ◽  
pp. 411-421 ◽  
Author(s):  
John M. Orbell ◽  
L. A. Wilson
Keyword(s):  
Decision Making ◽  
Opportunity Costs ◽  
Collective Rationality ◽  
Constitutional Design ◽  
Majoritarian Democracy ◽  
Prisoners Dilemma ◽  
Social Product ◽  
Person Game ◽  
Role Of Information

The existence of N-prisoners' dilemmas (conflict between individual and collective rationality) is a standard justification for collectivizing decision making through the state, but there is little theory about how different institutions operate to “solve” such dilemmas. The efficiency of majoritarian democracy, “selfish dictatorship” and uncoordinated individualism is explored using a simple nine-person game. Majoritarian democracy is found to produce equilibrium outcomes at the maximum social product available when the opportunity costs of “cooperating” are less than half the magnitude of the externalities, but to produce no such equilibrium when the opportunity costs are greater than that. Our research draws implications for the role of information in constitutional design, and of altruism.

The costs of giving up: Action versus inaction asymmetries in regret

2013 ◽  
Vol 36 (6) ◽  
pp. 702-702 ◽  
Author(s):  
Antoinette Nicolle ◽  
Kevin Riggs
Keyword(s):  
Opportunity Cost ◽  
Cost Model ◽  
Counterfactual Thinking ◽  
Mental Effort ◽  
Opportunity Costs ◽  
Anticipated Regret ◽  
Current Task ◽  
A Current ◽  
Counterfactual Emotions

AbstractKurzban et al.'s opportunity cost model of mental effort relies heavily on counterfactual thinking. We suggest that a closer inspection of the role of counterfactual emotions, and particularly of action/inaction asymmetries in anticipated regret, may be important in understanding the role of opportunity costs in decisions to persist with a current task.

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