Concept: cost-benefit analysis

Cost-benefit analysis involves, whether explicitly or implicitly, weighing the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option. Rational agents are assumed to never take an action for which the expected benefits are less than the expected costs.

The Baby Shower icon

The Baby Shower

cost-benefit analysis | economics of crime | incentives | thinking at the margin

The Barber icon

The Barber

cost-benefit analysis | dominant strategy | game theory

The Chicken Roaster icon

The Chicken Roaster

cost-benefit analysis | externality

The Contest icon

The Contest

cost-benefit analysis | rate of time preference

The Parking Garage icon

The Parking Garage

competition | cost-benefit analysis | rationality

The Parking Garage icon

The Parking Garage

common resource | cost-benefit analysis | thinking at the margin