/sci/ - Science & Math

>>3045299
Sounds pretty cool.

>>3045294
>Driving for one hour does not imply the only cost is an opportunity cost of $10. There is also a cost of time, gasoline, security, effort, etc
I thought about this too. But usually someone has costs in commuting to work, so that kinda gets ruled out. The difference between search costs of savings should be quite small in comparison to the costs of commuting?
The only thing I can think of is perception. $10 of $4000 seems small even though it is in absolute terms, equal to opportunity cost of wages.
I think my lecturer once said that irrationality is rational, and that if irrational behaviour is based on false beliefs which are not challenged, then the consumer maximises his utility... a complete cop-out lol