Rejection

The economics told us an interesting theory, the first choice and the second choice are the only important things you need to consider when making decision. As when we consider the economic cost, the only thing contribute to the opportunity cost is just the value of the second choice. As economics always considered that people are rational. Only first choice will be selected and second choice hence deemed to be the opportunity cost.

But, economics sometimes may go wrong. If it is a scenario that people tend to make their decision in an irrational way, then, first priority will not be promised to be selected. And most of the case, it is the second priority to be selected. Why? Is it that selector don't know which choice will give them the highest return? No, they all know which one is better. No matter what kind of models used, they give the same result. However, people simply ignore it. The major reason is that the second priority usually will have a shorter payback period, maximization of wealth is not important for irrational people, collect back all the contribution as soon as possible is the only thing to be considered. So, the quicker way to obtain satisfaction, the choice will then usually will be selected. Unluckily, those proposal with long run huge benefits, usually a life-long case, due to the late payback of satisfaction, are usually being rejected at the beginning of selection.

Under the wrong assumption, previously well done economic model will then induce a totally wrong answer. Continue the above example, if the assumption that people is rational is no longer valid. The first adverse result will be the early rejection of the best choice. Then, the decision made in marginal consideration will push people into a deep hole dipped by yourself. Marginal consideration required you to consider the effect of last unit cost and compare with the marginal satisfaction. Second priority choice usually show a decayed satisfaction curve. That means, marginal benefits from the choice decayed with increase in satisfaction quantity demand. To obtain the same satisfaction, more and more contribution required. and one day, your contribution will inevitably cross over the satisfaction curve and afterward, there will be no longer satisfaction obtained from this choice. However, you will become no choice at that moment, or your choice may be just limited to continue or abandon, usually abandon will be chosen.

However, there will be no difference in the new selection process, provided that the assumption that you are irrational is not eliminated and replaced by rational. The same process, best selection to be eliminated at the beginning, second priority, due to its early easy achievement to the threshold level, it will still be selected. And then, it is just another spirals, no way to escape. The only thing you could change is to adjust the assumption before any selection.