James Buchanan argued that opportunity cost is subject to the perspective of the individual rather than a universally agreed upon value.

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Universally respected as one of the founders of the Public Choice school of economics, James Buchanan is the author of numerous books and hundreds of articles in public finance, public choice, constitutional economics, and economic philosophy. While he may be best remembered for works such as The Limits of Liberty and The Calculus of Consent, co-authored by Gordon Tullock, we mustn’t forget his critical contributions elsewhere.

Buchanan’s groundbreaking work in Cost and Choice explores opportunity cost theory in a revolutionary way. Though the Austrian School of economists enunciated similar views of cost decades before Buchanan, he advances his theories by attempting to integrate his views into the orthodox classical and neoclassical framework.

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