What is opportunity loss also referred to as?

Opportunity loss is best referred to as the loss from not making the best decision because it quantifies the potential benefits that are foregone when choosing one alternative over another. In decision-making and linear programming, it highlights the difference between the actual outcome of a decision made and the potentially better outcome that could have been achieved if a different choice had been made. This concept is crucial for assessing the effectiveness of decisions in various scenarios where multiple options are available.

In contrast, while other terms might relate to decision-making concepts, they do not capture the essence of opportunity loss as precisely as the identification of the loss due to not choosing the best option. "Decision loss" and "investment regret" might suggest a negative outcome, but they lack the specific focus on the missed opportunities inherent in the concept of opportunity loss. "Opportunity cost," while closely related, typically refers to the cost of the next best alternative that is foregone, rather than directly addressing the loss from a specific poor decision.