Beware of Good Alternatives: Psychological Opportunity Cost Reduces Post-Choice Satisfaction

Reto Odermatt, Itay Sisso, Fanny Brun and Benjamin Scheibehenne

Working papers from Faculty of Business and Economics - University of Basel

Abstract: A fundamental assumption in consumer behavior is that opportunity cost is only relevant in the decision-making process and does not matter for utility once the decision is made. In this study, we question this assumption and consider the possibility that opportunity cost negatively impacts the satisfaction derived from a chosen option. In a series of hypothetical and real choice experiments, we provide evidence that opportunity cost significantly decreases consumers’ happiness after the choice.

JEL-codes: D01 D12 I31 (search for similar items in EconPapers)
Date: 2026-04-07
New Economics Papers: this item is included in nep-cbe, nep-dcm and nep-exp
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Persistent link: https://EconPapers.repec.org/RePEc:bsl:wpaper:2026/01

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