16 July 2006
Opportunity Cost
07/22/06 14:24 Filed in: Behavioral Concepts
Note - This is a re-publication of the very first Behaviorally Speaking article from 2006 (there has not a three year-gap in postings). When we re-designed the site recently we did not re-post all of the previous entries, though we will be adding in those which seem especially relevant. This article is the first archived entry to be added, as it is referenced in a current posting - EJW
As we begin our conversation together about behavior analysis, I think I want to start by introducing the concept of Opportunity Cost. The term, which I’ll explain in a minute, does not refer specifically to a concept in behavior analysis. This may seem odd in a column about behavior analysis, but the concept of opportunity cost is central to the mission of Forest City Behavior & Development.
Opportunity cost essentially refers to the opportunities that we sacrifice when we choose one path over another. Although the term may not be familiar, the idea is one that you’ve probably come across before. The resources we have available to accomplish things are limited, and when we go one way we use up the time, money, and energy that could have been spent going a different direction. Parents of young adults often struggle with this, for example, when a child who will be graduating from high school begins to talk about “taking a year off” before considering college. That time taken off has a cost in lost time spent progressing toward one’s future. In the United States there is an ongoing debate about whether we should spend money, energy, and time, on national defense, or focus those resources on poverty, or health care, or any of a number of potential needs at home. This debate reflects the understanding that either course of action has a cost that reflects the opportunities offered by the other path. Read More...
As we begin our conversation together about behavior analysis, I think I want to start by introducing the concept of Opportunity Cost. The term, which I’ll explain in a minute, does not refer specifically to a concept in behavior analysis. This may seem odd in a column about behavior analysis, but the concept of opportunity cost is central to the mission of Forest City Behavior & Development.
Opportunity cost essentially refers to the opportunities that we sacrifice when we choose one path over another. Although the term may not be familiar, the idea is one that you’ve probably come across before. The resources we have available to accomplish things are limited, and when we go one way we use up the time, money, and energy that could have been spent going a different direction. Parents of young adults often struggle with this, for example, when a child who will be graduating from high school begins to talk about “taking a year off” before considering college. That time taken off has a cost in lost time spent progressing toward one’s future. In the United States there is an ongoing debate about whether we should spend money, energy, and time, on national defense, or focus those resources on poverty, or health care, or any of a number of potential needs at home. This debate reflects the understanding that either course of action has a cost that reflects the opportunities offered by the other path. Read More...
