PERCEIVED COSTS

THE AUTHOR EXAMINES THE LOGICAL AND ECONOMIC STATUS OF THE NOTION OF PERCEIVED COSTS, AND SUGGESTS WAYS IN WHICH IT MIGHT BE MEASURED. IT IS INTENDED TO CONCENTRATE, IN THIS NOTE, ON THE DIFFERENCE BETWEEN MARKET PRICES AND SOME PSYCHIC ENTITY TO WHICH CONSUMERS RESPOND. CAUSES OF THIS PERCEPTION OF COSTS ARE EXAMINED AND IN ORDER TO ANALYSE CASES OF UNPERCEIVED COSTS, TWO NOTIONS ARE INTRODUCED: PERCEIVED COSTS AND CONSUMERS' OVERHEADS, THE LATTER BEING THE PAYMENTS MADE BY CONSUMERS NOT FOR THE PURPOSE OF DIRECT CONSUMPTION BUT IN ORDER TO MAKE CERTAIN CONSUMPTION POSSIBLE. EQUATIONS ARE DERIVED WHICH SHOW THE DIVERGENCE BETWEEN PERCEIVED AND ACTUAL COSTS. SEE ALSO IRRD ABSTRACT NO 203623.

• Corporate Authors:

  Department of The Environment /UK

  /Highway Economics Unit
  ,   United States 
• Authors:
  • Neuburger, H
• Publication Date: 1970-6

Language

• English

Media Info

• Features: References;
• Pagination: 13 p.
• Serial:
  • Issue Number: 25

Subject/Index Terms

• TRT Terms: Attitudes; Costs; Equations; Measurement
• Subject Areas: Finance; Highways; Operations and Traffic Management;

Filing Info

• Accession Number: 00228526
• Record Type: Publication
• Source Agency: Transport and Road Research Laboratory (TRRL)
• Report/Paper Numbers: R&d Rpt
• Files: TRIS
• Created Date: Feb 1 1974 12:00AM