Let's say you have to choose one of several options A, B and C. Opportunity cost is the value of the best alternative to the option you choose. Thinking in terms of opportunity cost highlights the scarcity of our resources, and the fact that every decision we make means giving up on many alternative possibilities. It can encourage us to make sure we've adequately explored and assessed all the possible options before us. Things it can trigger: - Maximising rather than satisficing - Loss aversion - Analysis paralysis - Exploration - Excessive focus on what can be easily measured - Perpetual urgency - Encourage "have cake and eat it" moves - Valuing your time - FOMO Many thought experiments in [[Moral philosophy]] and especially [[consequentialist ethics]] involve careful consideration of opportunity cost. These thought experiments are always highly simplified, so it is rarely a simple task to transfer the insights gained from the experiments into every day life. For example, a thought experiment might point out that the welfare effects of buying an ice cream are far less positive than those of buying an anti-malerial bed net. Does this mean we should never buy ice cream? #inbox #ideahazard