60sec snip

Planet Money Summer School cover image

Intro Econ 1: Choices & Dating

Planet Money Summer School

NOTE

Think Incrementally for Better Choices

Decision-making can be enhanced by focusing on incremental or marginal choices. This approach allows individuals to assess whether an additional item offers enough value to justify its consumption. In this case, even if the marginal cost is zero, the marginal benefit may be negative due to the self-control required to manage the outcome of that decision. Thus, evaluating choices at the margin helps clarify whether to proceed with additional consumption or not.

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