Art Markman Blogs for Psychology Today: "Another shopping tip: Consider opportunity costs"
Posted: December 15, 2009
"As we approach the holidays many of us are doing a lot of shopping. We buy gifts for family and friends, and we also pick up a few things for ourselves, taking advantage of holiday sales.
It ought to seem obvious that every dollar we spend on one purchase is a dollar that we can't spend on another purchase. Economists would say that each purchase has an opportunity cost. Once we have made that purchase, that money cannot be spent on something else in the future. To what extent do these opportunity costs affect the purchases we make?" Read more...