What is the value of the information?

The value of the information is the highest price that the person would be willing to pay for this to happen before this. This plays a role in decision -making processes at all levels, from deciding when to take a holiday to investments in stocks. When analyzing the value of the information, it is distinguished between perfect and imperfect information, with perfect information with more value. People can always decide to ignore the information after receiving it, which can distort value. Perfect information would allow the patient to know whether treatment will be successful before starting treatment, and people could be willing to pay a high price. The imperfect information is less valuable and provides projection or forecast rather than fixed information about the result. The doctor could be able to tell the patient, jelly is successful in 75% of patients. Sometimes people are willing to pay more than the information is really worth it. People may appreciate the ability to drive and predict results and will not consider the cost -effectiveness efficiencyEktivity in the process of deciding how to proceed with something.

There are a number of mathematical formulas to help people calculate the value of information in different environments. Quantification of some situations may be difficult. For example, in the case of cancer patient, it may be difficult to place monetary value on quality and comfort, although estimates of lost wages and other financial costs could be part of the equation. For situations as a purchase of security, the equation can be easier to calculate, as people can look at clear costs and benefits for investing or selection.

The decision -making study includes a number of parameters, not just the value of information. Also, people can decide to proceed against recommendations, ignore information or focus on information in information. Decision -making can also be more complicated when more people participate in this process, each person affectedIt knows the decision and makes it difficult to predict how people will behave.