All Things Policy: Why Neglecting Opportunity Costs Leads to Bad Policy

Opportunity cost is the value of the next best alternative that is foregone when exercising a particular option. Any good public policy needs to take this into account, to avoid an inefficient allocation of scarce resources. Pranay Kotasthane and Sarthak Pradhan discuss the concept of opportunity cost neglect and its public policy implications across sectors.

The paper “Opportunity cost neglect in public policy” can be found here: