What I am trying to find is the origin of the use of the term "avoided",
"avoidable" etc., to describe the opposite of a sunk cost.  "Avoided cost"
is a commonly used term in regulatory economics.

Adam McHugh



You may have subtly modified the connotations or nuances of avoided cost, as
used in regulatory economics. It means the cost a utility does not have to
incur as a result of customers either: 1, consuming less, or 2, supplying
some power to the line through a backwards meter, as by cogenerating. These
avoided costs might include the use of existing peaking capacity whose
capital costs are sunk, but whose variable costs are high.

It is quite possible that your intent is to cover that matter, but the
"opposite of a sunk cost" permits of other interpretations.

I trust you noted my earlier reference to H. George, Science of Political
Economy; and Perelman's reference to Peshine (?) Smith.


Mason Gaffney