The term “cost-benefit fallacy” is not a formally recognized logical fallacy, but it might be used to refer to errors in cost-benefit analysis.
Cost-benefit analysis is a framework for systematically evaluating the advantages and disadvantages of investments, policies, and other decisions in fields such as economics, public policy, and healthcare.
Mistakes in cost-benefit analyses can include the following:
Confirmation bias: favoring information that supports preconceived notions
Incomplete data: overlooking relevant costs or benefits
Subjectivity: biases in valuing intangible benefits or costs
Discounting: incorrect application of discount rates affecting future values
Time horizon: misjudging the appropriate timeframe for analysis