Opportunity Cost

In: Business and Management

Submitted By patrickchang11
Words 364
Pages 2
1 What is the fundamental nature of the traveler’s dilemma? How does the traveler seek to minimize the risks involved in solving this dilemma?

Similar to many other situation, the traveler’s dilemma is a specific type of game in which two travelers make an effort to minimize their losses and maximize their benefits. It is also placed in a situation in which neither traveler gives any concerns about the other but still acknowledge one another. Therefore, the fundamental nature of the traveler’s dilemma is to reach an equilibrium in which each traveler is able to gain an equal amount of benefits and losses.

2 Describe the opportunity cost of the choices made by the traveler.

An opportunity cost is the measure of a cost in a missed opportunity. In a variety of different dilemmas, there is generally an infinite amount of choices to be made. In the traveler’s dilemma, he or she has the opportunity of submitting a certain amount in order to maximize their gains and minimize their losses. By only speaking in terms of opportunity costs in a traveler’s dilemma, it is very difficult to accurately determine the rational choices a traveler may decide on. He or she will only decide on the opportunities that will maximize their benefits and minimize their losses. Therefore, by following these rules, the benefits and losses of an opportunity will change, thus the Nash equilibrium will as well.

3 Frost entitled his poem “The Road Not Taken.” Why isn’t it entitled “The Road I Took”?

Although there are multiple references in the poem that come from a first-person perspective, Robert Frost still entitled his poem “The Road Not Taken” rather than “The Road I Took”. I believe that Frost is describing the overall experience of making a choice for his readers. For example, he speaks of two roads in which they were “diverged in a yellow wood” and not being able to see what…...

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