Abortion continues to be an issue for medical, legal and ethical grounds. Many are hard to sayrnthat the desire to abort by a woman is mainly brought by unintended pregnancies. Unintendedrnpregnancy most of the time leads to induced abortion. People also claim that induced abortionrnis one of the major causes of maternal mortality. But the relationship is not as such linear.rnThere are other more factors to intervene. Thus this paper tried to investigate how a womanrnreaches a decision of abortion in Addis Ababa with a view of identifying policy options thatrnwill assist in reducing the high deaths associated with abortion. The study utilized a facilityrnbased study and was conducted from February to Mid-March 2012 in seven selected servicernproviders in Addis Ababa.rnThe model the study used is developed from the Economic theory of Demand and is carried outrnusing a simple pro bit regression. Abortion decision is modeled as a function of the full price ofrnthe abortion and the respondent's characteristics. This is based on the assumption that abortionrnis a posterior decision-the decision by a woman who is pregnant not to have the child.rnThe study reveals that the probability that a pregnant woman chooses an aboltion is dependentrnon prices and cost factors. The opportunity cost of child bearing is found to be positivelyrnassociated with the demand for abortion. As the associated costs of pregnancies (child deliveryrnand child rearing) increases abortion decision increases. The opportunity cost of abortionrn(education and unemployment) was found to be significant in some age groups. Among therndemographic characteristics marital status is found to be a significant in all age groups where asrnage of women is not found to determine the probability of abortion in all cases. Taste ofrnabortion (religion and religiosity) is found to be a significant determinant factor of thernprobability of abortion. Being Catholic/Protestant and being very religious is also found to bernimportant determinant factor of abortion. Direct price of abortion and Contraceptive knowledgernand practice are found to be important determinants for aboltion in all age groups.rnThus, the study proposed that various policy options aimed at reducing unwanted pregnanciesrnshould be set and faithfully implemented. In addition, since nearly half of those who demandrnfor abortion have post abortion complications, the availability of post abortion services inrnvarious health facilities can help to prevent unnecessary maternal deaths as a result of theserncomplications.