Opportunity Cost in Economics and Finance: Who Has It Right?

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25940082%3A_____%2F19%3AN0000043" target="_blank" >RIV/25940082:_____/19:N0000043 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Opportunity Cost in Economics and Finance: Who Has It Right?
Original language description
A review of textbooks in the BA in Business Administration shows that the concept of opportunity cost must be distinguished from the principle of forgone-opportunity-based assessment. The latter is shared and undoubted; the former is used only in economics and finance, and it is not well defined. A review of best-selling textbooks in economics and in finance reveals that there are two major discrepancies in economic definitions: (1) Opportunity cost may be defined as forgone goods or forgone achievement of goals. (2) Opportunity cost compare the desired outcome of a course of action with a benchmark that may be ambiguous. Compared to economics, opportunity cost seems to be a non-issue in finance. All the reviewed finance textbooks use the concept of opportunity cost consistently. The field of finance better upholds the scientific and educational standard of clarity and consistency of delivery of knowledge.
Czech name
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Czech description
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Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
7th International Scientific Conference on IFRS - Global Rules and Local Use - Beyond the Numbers
ISBN
978-80-907602-0-2
ISSN
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e-ISSN
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Number of pages
14
Pages from-to
322-335
Publisher name
Anglo-American University
Place of publication
Praha
Event location
Praha
Event date
Oct 10, 2019
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000649685400025

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