Might a Cheap Option Be Expensive Because of the Decisions It Creates?
Every choice has management costs.
Sometimes. Lower prices can introduce additional complexity, uncertainty, or time costs.
A traveler saves money by booking separate tickets from different providers. The price looks attractive.
The hidden mechanism is decision overhead. Every additional connection, policy, and coordination requirement creates work.
Economists often focus on direct costs, but real-world decisions also involve management costs.
Cheap options become expensive when they require constant supervision.
