Behavioral aspects of cost-benefit analysis.

This paper reviews that literature with a focus on decision making in the public realm. Three generic sets of limits are described: 1) the unavailability of vital inputs, 2) the absence of procedures for assessing the validity of an analysis, and 3) the necessary in completeness of any formal model of a decision situation. These limits have not always been fully appreciated in conducting analyses. Despite these deficiencies, however, cost benefit analyses may have an important role to play in decision-making.