scholarly journals Opportunity costs and decision-making in peasant agriculture.

1968 ◽  
Vol 16 (4) ◽  
pp. 243-252
Author(s):  
E.S. Clayton
Keyword(s):  
Decision Making ◽  
Economic Efficiency ◽  
Opportunity Cost ◽  
Opportunity Costs ◽  
Cash Crop ◽  
Crop Quality ◽  
Poor Countries ◽  
Peasant Agriculture

Opportunity costs of labour and land in peasant agriculture are shown to be positive and often substantial. Opportunity costs are defined as the price that can be obtained for alternative uses of labour and land. This thesis is contrary to popular notions about zero opportunity cost of agricultural labour in poor countries. Quantitative illustrations are given on the factor opportunity cost arising out of farmer decisions relating to timeliness of operations, level of yields, choice of crops, cash-crop quality and levels of mulching. If these costs are taken into account, a divergence will frequently exist between technical and economic efficiency: lower technical levels in certain cases may be more economic. T. A. (Abstract retrieved from CAB Abstracts by CABI’s permission)

scholarly journals ANALISIS DIFFERENTIAL COST DAN OPPORTUNITY COST DALAM PENGAMBILAN KEPUTUSAN MEMBELI ATAU MEMPRODUKSI SENDIRI PADA INDUSTRI RUMAH PANGGUNG WOLOAN

2015 ◽  
Vol 13 (03) ◽  
Author(s):  
Romeo Fersi Mongdong ◽  
Jenny Morasa ◽  
Heince Wokas
Keyword(s):  
Cost Analysis ◽  
Analytical Method ◽  
Opportunity Cost ◽  
Raw Materials ◽  
Quantitative Result ◽  
Opportunity Costs ◽  
Business World ◽  
Differential Costs ◽  
The Right ◽  
The Cost

The business world today is characterized by increasing competition among existing companies. Competition occurs in all sectors of the economy both industry, trade, and services. One of the decisions that must be taken in planning at every alternative is to buy or produce itself a component of raw materials. Differential cost are related to the opportunity cost, which is the differential cost incurred costs as a result of certain decisions while the opportunity cost is the cost incurred when choosing a decision. The purpose of this study to analyze the differential costs and opportunity costs in the decision to buy or produce their own on Industri Rumah Panggung Woloan. The analytical method used is descreptive quantitative. Result of the differential cost analysis showed that the right decisions can be taken by the management company the manufactures its own because getting a hihgter differential gain, compared to buying from outside. While the opportunity cost of the buying raw materials from outside is more profitable, thus producing itself becomes more expensive. Should the leadership Industri Rumah Panggung Woloan produce their own wood from the outside becauseit would be more adventageous, compared to taking wood there are kept alone.

scholarly journals Opportunity Costs in the Game of Best Choice

10.37236/8322 ◽  
2019 ◽  
Vol 26 (1) ◽  
Author(s):  
Madeline Crews ◽  
Brant Jones ◽  
Kaitlyn Myers ◽  
Laura Taalman ◽  
Michael Urbanski ◽  
...  
Keyword(s):  
Decision Making ◽  
Classical Case ◽  
Secretary Problem ◽  
Sequential Decision Making ◽  
Opportunity Costs ◽  
Sequential Decision ◽  
Probability Of Success ◽  
Uniform Model ◽  
Weighted Model ◽  
Over Time

The game of best choice, also known as the secretary problem, is a model for sequential decision making with many variations in the literature. Notably, the classical setup assumes that the sequence of candidate rankings is uniformly distributed over time and that there is no expense associated with the candidate interviews. Here, we weight each ranking permutation according to the position of the best candidate in order to model costs incurred from conducting interviews with candidates that are ultimately not hired. We compare our weighted model with the classical (uniform) model via a limiting process. It turns out that imposing even infinitesimal costs on the interviews results in a probability of success that is about 28%, as opposed to 1/e (about 37%) in the classical case.

scholarly journals Konsep Dasar dan Teknik Manajemen Risiko Perbankan Syariah

2018 ◽  
Vol 4 (1) ◽  
Author(s):  
Ahdiyat Agus Susila
Keyword(s):  
Opportunity Cost ◽  
Decision Makers ◽  
Opportunity Costs ◽  
Adverse Impacts ◽  
Potential Losses ◽  
Negative Impacts ◽  
Uncertain Future ◽  
Definition Of ◽  
The Impact ◽  
Unexpected Outcomes

Often risks arise because of more than one choice and the impact of each option is not yet known for certain, as uncertain future. There is always an opportunity cost that follows every option taken. Thus, risks may be defined as the consequences of uncertain options that have the potential to lead to unexpected outcomes or other adverse impacts to decision makers. This is the classic definition of risk. From this definition, risk contains several dimensions, namely opportunity costs, potential losses or other negative impacts, uncertainty, and obtaining results that do not match expectations. It is with these demands that risks are measured, mitigated and monitored during the business process.  

Development of the oncology opportunity cost assessment tool.

2021 ◽  
Vol 39 (15_suppl) ◽  
pp. e13502-e13502
Author(s):  
Nathan Handley ◽  
Adam F Binder ◽  
Alexandra Gentsch ◽  
Rachel Granberg ◽  
Arianna Heyer ◽  
...  
Keyword(s):  
Focus Groups ◽  
Opportunity Cost ◽  
Assessment Tool ◽  
Cost Of Care ◽  
Cost Assessment ◽  
Opportunity Costs ◽  
Cognitive Interviews ◽  
Patient Level ◽  
Oncology Care ◽  
The Impact

e13502 Background: While awareness of direct patient-level costs of cancer care are growing, less is known about the patient-level opportunity cost of care. Opportunity costs of care may include time spent seeking care, lost wages, lost leisure time, and other indirect costs associated with seeking care. Despite acknowledgment of the importance of considering patient opportunity costs in care treatment decisions, assessment of opportunity costs experienced by individual patients or caregivers is not routinely performed by healthcare providers in general, or oncology providers in particular. The purpose of this work was to develop an instrument, the Oncology Opportunity Cost Assessment Tool (OOCAT), to evaluate patient opportunity cost of seeking oncology care. Methods: Survey development was an iterative process with multiple rounds of stakeholder engagement. First the research team developed a list of potential opportunity cost themes informed by their own experiences. Next, we met with an established patient advisory group within the cancer center to expand this list of themes. We then conducted focus groups with patients and caregivers to explore in further depth their logistical and financial considerations related to seeking care. Findings were used to further expand the list of opportunity cost themes, with this list reviewed in real time with the focus group participants to ensure perspectives were appropriately captured. We then generated a set of survey items to represent each of the themes listed. We generated two items to represent each unique theme. The first item of the instrument sought to quantify the opportunity cost of the theme (e.g. time spent parking); the second component ascertained the patient-perceived importance of the theme using a 7-point Likert scale. Upon drafting of the initial OOCAT, we performed cognitive interviews with a random sampling of patients in order to ensure content validity and clarity of instrument items. Results: We completed 4 virtual focus groups with a total of 23 participants (17 patients and 6 caregivers) followed by cognitive interviews with 13 patients. The resulting OOCAT consists of 17 items that examine time requirements, financial implications, and logistical and quality of life challenges for both patients and caregivers associated seeking oncology care. Conclusions: The OOCAT is a 17-item instrument designed to quantify patient-level opportunity costs of seeking oncology care. Further studies work is needed to validate the OOCAT survey and assess the impact of incorporating quantified assessment of opportunity cost into decision regarding when and where to seek oncology care.

scholarly journals Background information for the agricultural technology management program (Atmp) Agro-expert

2012 ◽  
Vol 50 (No. 1) ◽  
pp. 342-40
Author(s):  
B. Havrland
Keyword(s):  
Decision Making ◽  
Technology Management ◽  
Economic Efficiency ◽  
Management Program ◽  
Agricultural Technology ◽  
Background Information ◽  
Decision Making Process ◽  
Software Program ◽  
Production Conditions

Economic efficiency in farming is achieved as a result of manager’s skills and proper technologic equipment available on the farm suitable for carrying out husbandry operations. Applying skilled management to the whole business of farming is of an extraordinary importance, too. The manager should be equipped with more or less sophisticated software that would make his decision making process more professional and adequate to (generaly) production conditions. Such software (program) will allow proving his technological conception by economic calculations and proper tests. An Agricultural Technology Management Program AGRO-EXPERT has been conceived and is discussed in this paper. The authors analyze situation in appearance of such programs and conditions/information necessary for their correct (adequate) functions.

scholarly journals Un-Vignetting vignettes

Pomorstvo ◽  
2017 ◽  
Vol 31 (1) ◽  
pp. 60-66
Author(s):  
Davor Mance
Keyword(s):  
Opportunity Cost ◽  
Primary Source ◽  
Sunk Costs ◽  
Opportunity Costs ◽  
Marginal Costs ◽  
Pricing Scheme ◽  
Pareto Efficient ◽  
Differential Pricing ◽  
Optimal Quantity ◽  
Economic Criteria

In the art of photography, the phenomenon of vignetting means blurring of an image at its periphery compared to its centre. Vignettes are a form of road pricing independent of travel distance. Their usage in Croatia was recently rejected while in Europe, the number of countries using them, is increasing. The economic question of using vignettes as a primary source of revenue for the financing of Croatian highways was blurred by economically peripheral but politically sensitive welfare transfer issues. There has been no visible attempt to push the discussion back into the field of economics by using purely economic criteria such as: opportunity cost of usage, “sunk costs”, marginal costs, and total costs recovery. The paper aims at un-vignetting (un-blurring) the issue and re-focusing it towards economic arguments. The approach taken is a deductive-nomological argument based on opportunity costs of usage. The conclusion is straightforward: the vignettes are Pareto efficient since they make the society in general and the consumers in particular ultimately better off even after taking into account compensations. The opportunity costs of usage of congestion-free roads are zero. The optimal quantity-dependent price is then also zero. Since zero price does not recover costs, a differential pricing scheme needs to be put in place: one that does not depend on distance travelled.

scholarly journals The choice of mining development strategy based on the improved Bayes criterion

2020 ◽  
Vol 168 ◽  
pp. 00053
Author(s):  
Yevhen Lapshin ◽  
Borys Blyuss ◽  
Serhii Dziuba ◽  
Larysa Tatarko
Keyword(s):  
Decision Making ◽  
Initial Data ◽  
Development Strategy ◽  
Economic Efficiency ◽  
Development Strategies ◽  
Mineral Deposits ◽  
Mining Operations ◽  
Acceptable Range ◽  
Geological Conditions

The choice of mining development strategies is based on the main indicators of mining and geological conditions that characterize mineral deposits. The purpose of the research is to argue the application of the improved Bayes criterion when choosing rational mining development strategies by taking into account the complex mining and geological conditions. The methodology of decision-making in terms of managing geotechnical systems depends on whether or not the probabilities of the conditions and dynamics of the parameters of rocks and soils are known during the development of mineral deposits, as well as the construction of infrastructure facilities. If the probabilities are unknown, then there is the problem of making decisions in the conditions of uncertainty of the initial data to assess the efficiency of the mining enterprises. And if the probabilities are known, then we are dealing with the task of making decisions in conditions of risk and assess the safety of mining operations. The improvement of the Bayes criterion enables us to determine, with an acceptable range of changes in efficiency, a strategy which provides more likely an increase in economic efficiency compared to a strategy selected using the traditional Bayes criterion.

Experimental methods for environment and development economics

2009 ◽  
Vol 14 (4) ◽  
pp. 419-456 ◽  
Author(s):  
MARIAH D. EHMKE ◽  
JASON F. SHOGREN
Keyword(s):  
Decision Making ◽  
Experimental Economics ◽  
Experimental Methods ◽  
Test Theory ◽  
Resource Base ◽  
Poor Countries ◽  
Economics Experiments ◽  
Patterns Of Behavior ◽  
Environment And Development ◽  
Cycle Of Poverty

ABSTRACTMany poor countries remain trapped in a cycle of poverty and environmental degradation. Understanding how people react to existing and proposed solutions most likely can be improved using the methods of experimental economics. Experiments provide researchers a method to test theory, look for patterns of behavior, testbed economic institutions and incentives, and to educate people. Herein we explore how experimental economics has been used and could be used to help guide decision making to increase prosperity without overexploiting the resource base and environmental assets needed for basic survival.

When Do Opportunity Costs Count? The Impact of Vagueness, Project Completion Stage, and Management Accounting Experience

2010 ◽  
Vol 22 (1) ◽  
pp. 85-108 ◽  
Author(s):  
Lisa Marie Victoravich
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Relevant Information ◽  
Opportunity Costs ◽  
Decision Making Process ◽  
Business Partner ◽  
Project Completion ◽  
Management Accountants ◽  
Two Factors ◽  
The Impact

ABSTRACT: Management accountants have recently migrated toward a business partner role, and as a result they often assist management with the decision-making process. Thus, it is imperative that they excel at identification of relevant information such as opportunity costs. This study experimentally tests the prediction that management accounting experience mitigates the tendency to ignore opportunity costs with respect to two factors: opportunity cost vagueness and project completion stage. This study also investigates whether attending to opportunity costs has an impact on project continuance decisions. Results indicate that management accounting experience mitigates the effect of vague opportunity costs and project completion stage. It was also found that attention to opportunity costs acts as mediator and this in turn reduces the tendency to continue an existing project. This suggests that attending to opportunity costs influences decision-making and that it is likely to have an economic consequence.

Do Economists Recognize an Opportunity Cost When They See One? A Dismal Performance from the Dismal Science

2005 ◽  
Vol 4 (1) ◽  
Author(s):  
Paul J Ferraro ◽  
Laura O Taylor
Keyword(s):  
Decision Making ◽  
Graduate Education ◽  
Opportunity Cost ◽  
Graduate Training ◽  
Policy Research ◽  
The Past ◽  
Research And Teaching ◽  
Economic Reasoning ◽  
Introductory Economics

Abstract One expects people with graduate training in economics to have a deeper understanding of economic processes and reasoning than people without such training. However, as others have noted over the past 25 years, modern graduate education may emphasize mathematics and technique to the detriment of economic reasoning. One of the most important contributions economics has to offer as a discipline is the understanding of opportunity cost and how to apply this concept to all forms of decision making. We examine how PhD economists answer an introductory economics textbook question that requires identifying the relevant opportunity cost of an action. The results are not consistent with our expectation that graduate training leads to a deeper understanding of the concept. We explore the implications of our results for the relevance of economists in policy, research, and teaching.

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