“Judge the value of what you have by what you had to give up to get it.”

The principle of an opportunity cost does not at first glance seem hard to understand. If you spend half an hour noodling around on Twitter, when you would otherwise have been reading a book, the lost book-reading time is the opportunity cost of the tweeting. If you decide to buy a fancy belt for £100 instead of a cheaper one for £20, the opportunity cost is the £80 shirt you could otherwise have bought. Everything has a cost: whatever you were going to do instead, but couldn’t.


We would make better decisions if we reminded ourselves about opportunity costs more often and more explicitly. Nowhere is this more true than in the case of time. Many of us have to deal with frequent claims on our time — “Can we meet for coffee so that I can pick your brains?” — and find it hard to say no. Explicitly considering the opportunity cost can help: if I meet for coffee I’ll have to work an hour later, and that means I won’t be able to read my son a story before bedtime.


Folksonomies: economics productivity cost time management

/business and industrial (0.426300)
/hobbies and interests/reading (0.398771)
/food and drink/beverages/non alcoholic beverages/coffee and tea (0.346202)

opportunity cost (0.951085 (:0.000000)), lost book-reading time (0.777530 (:0.000000)), fancy belt (0.616143 (:0.000000)), better decisions (0.601153 (:0.000000)), frequent claims (0.594997 (:0.000000)), opportunity costs (0.567795 (:0.000000)), coffee (0.482696 (:0.000000)), glance (0.463667 (:0.000000)), Twitter (0.458748 (:0.000000)), principle (0.458740 (:0.000000)), bedtime (0.456699 (:0.000000)), shirt (0.456347 (:0.000000)), value (0.453002 (:0.000000)), brains (0.450544 (:0.000000)), tweeting (0.448303 (:0.000000)), case (0.446184 (:0.000000)), son (0.443340 (:0.000000))

Twitter:Company (0.771593 (:0.000000))

Costs (0.962572): dbpedia_resource
Price (0.912283): dbpedia_resource
Economics (0.835714): dbpedia_resource
Opportunity cost (0.745731): dbpedia_resource
Economic cost (0.744478): dbpedia_resource
Twitter (0.730847): dbpedia_resource
Economic value added (0.701294): dbpedia_resource
Interest (0.620815): dbpedia_resource

 Judge the value of what you have by what you had to give up to get it
Electronic/World Wide Web>Internet Article:  Harford, Tim (2018-04-06), Judge the value of what you have by what you had to give up to get it, Retrieved on 2018-05-05
  • Source Material [timharford.com]
  • Folksonomies: economics time time management costs


    17 JAN 2018


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