Choice and Opportunity Costs

• 成果类型: Article
• 署名作者: Manzini, Paola; Mariotti, Marco; Ulku, Levent
• 署名单位: University of Bristol; University of London; Queen Mary University London; Instituto Tecnologico Autonomo de Mexico; Instituto Tecnologico Autonomo de Mexico
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdaf101
• 发表日期: 2026
• 关键词: rationality; regret; MODEL

摘要

We define the (physical) opportunity cost of a choice x as the alternative that would be chosen if x were not available, and the opportunity cost of any unchosen alternative as x itself. The agent has preferences over pairs consisting of alternatives and their opportunity costs. Because costs affect choice and vice-versa, choice results from an intrapersonal equilibrium rather than from simple maximisation. In spite of significant rationality assumptions, the resulting behaviour can be highly non-standard, allowing intransitive choices. Rational utility maximisation is ensured by an additional new consistency condition on preferences. However, we argue that the maximised utility cannot be straightforwardly interpreted as a welfare relevant revealed preference. A generalisation of our model accommodates additional departures from standard rationality in the form of menu effects.