Emotional Hedging 0
While I was in the process of applying to graduate school, I had the opportunity to talk to a UCLA Business School faculty, Eduardo Schwartz, whose some of his main work was in something called "real options".
A real call option, like the name implies, is the right but not the obligation to make a certain decision in real life. For example, a real option could be whether to attend or not to Law School. But here is the conundrum: what is the the monetary cost in going to Law School? Of course there are a couple numbers than can be derived quickly, such as the actual tuition cost, the additional living expenses, the financial loss due to no or little work for the duration of the studies, etc.