dariusz grabka » happiness http://grabka.org/internet sharing is caring. Thu, 15 Sep 2011 23:25:10 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Opportunity Cost http://grabka.org/internet/2009/01/opportunity-cost/ http://grabka.org/internet/2009/01/opportunity-cost/#comments Mon, 19 Jan 2009 19:39:08 +0000 dariusz http://grabka.org/internet/?p=184 The older I get, especially the more I involve myself with business and with daily capitalist living, the more I hear the term opportunity cost.

It’s best explained with an example:  It doesn’t make sense to spend three hours shopping for groceries, standing about in the kitchen, and making a sandwich because it will always be cheaper and more efficient to buy a sandwich at Subway. Especially if you could be out there generating $20/hr for your time, and the sandwich only costs $7.

So why am I always somewhat dissatisfied with the sandwich from Subway?

Not because it’s not good (they are artists, after all), nor because the quality is poor, nor because I could make a better sandwich at home. The source of the discontent is, according to Barry Schwartz – choice. I had too many wonderful options to choose from. If I had no choice but to shop for groceries and make myself a simple sandwich based on limited supplies at my local corner grocery store, I would actually be more content with my choice. I wouldn’t be standing at Subway for 15 minutes deciding between Turkey + Bacon and Ham + Cheese.

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Barry Schwartz: The paradox of choice, from Ted.com, via Jon Haber.

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