Tradition: A Journal of Orthodox Jewish Thought

The alternative or opportunity cost doctrine has provided modern economic investigations with an invaluable tool of analysis. This doctrine advances the conceptualization of cost beyond its superficial identification with explicit outlays or payments. Cost is viewed as reflecting the value of opportunities foregone. The cost of obtaining anything is the value placed on whatever must be sacrificed in order to obtain it. Implicit in this formulation is the rejection of the idea that cost must in some way be associated with disutility. As long as time spent on a particular activity precludes the simultaneous pursuit of another activity, an opportunity cost is incurred. Talmudic literature recognizes the phenomenon of opportunity cost and discussions abound regarding its legal ramifications in a variety of circumstances. Four examples (three of which will be discussed) of the impact of Halakhah on opportunity cost are in the following settings: