Concept: thinking at the margin

From an economist's perspective, making choices involves thinking 'at the margin' - that is, making decisions based on small changes in resources. Doing so leads to the optimal decisions being made, subject to preferences, resources and informational constraints.

The Baby Shower

• cost-benefit analysis
• economics of crime
• incentives
• thinking at the margin

The Opposite

• sunk cost
• thinking at the margin

The Parking Garage

• common resource
• cost-benefit analysis
• thinking at the margin

The Strike

• sunk cost
• thinking at the margin