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 Opportunity Cost Classification of Goods and Markets

2015 ◽  
Vol 13 (1) ◽  
pp. 119-134
Author(s):  
Davor Mance ◽  
Nenad Vretenar ◽  
Jana Katunar
Keyword(s):  
Opportunity Cost ◽  
Economies Of Scale ◽  
Public Expenditure ◽  
Sunk Costs ◽  
Manufacturing Industries ◽  
Opportunity Costs ◽  
Marginal Rate ◽  
Marginal Costs ◽  
Economic Framework

Sixty years ago, Samuelson’s “Pure Theory of Public Expenditure” expounded the classification of goods, and Bain’s “Economies of Scale, Concentration and the Condition of Entry in Twenty Manufacturing Industries” expounded the structure-conduct-performance paradigm. To the present day, rivalry in- and excludability from consumption classify goods, and subadditivity and irreversibility in production classify market structure. Opportunity costs of production in the form of prospective sunk costs incentivise investment and production, and the sunk costs themselves induce subadditivities, specialization and convexity of the marginal rate of technical substitution. Opportunity costs in consumption are determined by the marginal costs of replacement. In light of the recent Nobel price award to Jean Tirole, we revisit some of the forgotten discussions and clarify some of the terminology under a more economic framework of opportunity costs.

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 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 Do Increasing Markups Matter? Lessons from Empirical Industrial Organization

2019 ◽  
Vol 33 (3) ◽  
pp. 44-68 ◽  
Author(s):  
Steven Berry ◽  
Martin Gaynor ◽  
Fiona Scott Morton
Keyword(s):  
Industrial Organization ◽  
Recent Literature ◽  
Sunk Costs ◽  
Fixed Costs ◽  
Antitrust Enforcement ◽  
Function Estimation ◽  
Marginal Costs ◽  
Price Increases ◽  
Empirical Industrial Organization ◽  
Production Function Estimation

This article considers the recent literature on firm markups in light of both new and classic work in the field of industrial organization. We detail the shortcomings of papers that rely on discredited approaches from the “structure-conduct-performance” literature. In contrast, papers based on production function estimation have made useful progress in measuring broad trends in markups. However, industries are so heterogeneous that careful industry-specific studies are also required, and sorely needed. Examples of such studies illustrate differing explanations for rising markups, including endogenous increases in fixed costs associated with lower marginal costs. In some industries there is evidence of price increases driven by mergers. To fully understand markups, we must eventually recover the key economic primitives of demand, marginal cost, and fixed and sunk costs. We end by discussing the various aspects of antitrust enforcement that may be of increasing importance regardless of the cause of increased markups.

Robust Pricing of Transportation Networks under Uncertain Demand

2008 ◽  
Vol 2085 (1) ◽  
pp. 21-30 ◽  
Author(s):  
Lauren M. Gardner ◽  
Avinash Unnikrishnan ◽  
S. Travis Waller
Keyword(s):  
Demand Uncertainty ◽  
Travel Demand ◽  
Transportation Networks ◽  
Random Variable ◽  
User Equilibrium ◽  
Uncertain Demand ◽  
Optimal Pricing ◽  
Elastic Demand ◽  
Marginal Costs ◽  
Pricing Scheme

Traditionally, tolls on transportation networks are determined on the basis of a single value of travel demand, deterministic elastic demand relationships, or informal scenario analysis. However, since the demand on the network cannot be forecast perfectly, pricing may prove to be suboptimal when the realized value of demand deviates significantly from the planned value. Therefore, there is a need for a robust pricing scheme that accounts for demand uncertainty. Optimal pricing is examined through marginal costs in which origin-destination travel demand is a random variable to understand better the direct impact and sensitivity of the uncertainty. Three methods are evaluated for determining robust prices: inflation or deflation of the planning demand, averaging tolls from various planning demands, and genetic algorithms. The performance of these three methods is evaluated by analyzing user equilibrium for various future travel demand scenarios. From the results of the analysis, a more robust pricing scheme that accounts for variations in demand is developed.

Estimating Costs in the Economic Evaluation of Medical Technologies

1990 ◽  
Vol 6 (1) ◽  
pp. 57-75 ◽  
Author(s):  
Bryan R. Luce ◽  
Anne Elixhauser
Keyword(s):  
Sensitivity Analysis ◽  
Economic Evaluation ◽  
Cost Estimation ◽  
Economic Evaluations ◽  
Opportunity Costs ◽  
Specific Cost ◽  
Marginal Costs ◽  
Medical Technologies ◽  
Common Problems ◽  
Practical Recommendations

The complexities and nuances of evaluating the costs associated with providing medical technologies are often underestimated by analysts engaged in economic evaluations. This article describes the theoretical underpinnings of cost estimation, emphasizing the importance of accounting for opportunity costs and marginal costs. The various types of costs that should be considered in an analysis are described; a listing of specific cost elements may provide a helpful guide to analysis. The process of identifying and estimating costs is detailed, and practical recommendations for handling the challenges of cost estimation are provided. The roles of sensitivity analysis and discounting are characterized, as are determinants of the types of costs to include in an analysis. Finally, common problems facing the analyst are enumerated with suggestions for managing these problems.

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 OPPORTUNITY COST ARE A KEY TO CASH PUZZLE OF THE COMPANY

2015 ◽  
pp. 98-105
Author(s):  
S. I. Lutsenko
Keyword(s):  
Capital Market ◽  
Opportunity Cost ◽  
Random Effect ◽  
Point Of View ◽  
Model Specification ◽  
Opportunity Costs ◽  
Internal Sources ◽  
Relationship Of

Features of influence of opportunity cost on the cash policy of the Russian companies are considered. The author analyzes relationship of cause and effect of escalating of cash. The author researched features of a choice the Russian companies of sources of financing. The author shows that availability of opportunity costs forces the companies to be reoriented on internal sources of financing. Opportunity costs are the indicator for a choice of optimum financing. The model (specification) presented in work is tested for determination of its adequacy, from the point of view of quality of forecasting. It is estimated three kinds of specifications: pooled regression, regression with a random effect and regression with the fixed effect. The purpose of work attempt to open cash puzzle of company disclosing of a puzzle. That is, to reduce opportunity costs for preserving of cash as the preventive motive, allowing to struggle with financial restrictions. Novelty of the presented work consists that the companies can rationally manage cash holdings, using negative shocks (signals) in the capital market, to expect them and without supposing the situations connected with financial restrictions.

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