Shadow Pricing
The arbitrary assignment of dollar values to non-marketed goods. Investopedia Says:
When performing different types of cost-benefit analyses, certain costs or benefits are intangible and, in order for full analysis of the scenario, all these variables must be assigned values.
For example, when performing a cost-benefit analysis on a mining operation, the lost intangible value associated with the scenic views must be priced and factored in as a cost. Related Terms:
Alternative Asset
Intangible Asset
Shadowing
Tangible Asset |