EVPI

AcronymDefinition
EVPIExpected Value of Perfect Information (operations management)
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In our analysis, we found system-wide VSS and EVPI values concerning global social welfare close to 0.0%.
Figure 3 shows only small variations in the investment decisions, which corresponds well to the small values for VSS and EVPI. Even though the differences are small, having fewer and smaller expansions in EVP relative to SP and the union of WSs are reasonable.
Table 1 Probability Demand Doses 100 200 300 400 500 100 200 300 400 500 0.1 100 500 (1000) (2500) (4000) (5500) 0.2 200 500 1000 (500) (2000) (3500) 0.3 300 500 1000 1500 0 (1500) 0.25 400 500 1000 1500 2000 500 0.15 500 500 1000 1500 2000 2500 EMV 500 800 700 0 (1200) Figure 1 EMV = (0.1)(-$1000) + (0.2)($1000) + (0.3)($1000) + (0.25)($1000) + (0.15)($1000) EMV = $800 Figure 2 EPUC = (0.1)(($500) + (0.2)($1000) + (0.3)($1500) + (0.25)($2000) + (0.15)($2500) EPUC = $1,575 Therefore, EVPI = EPUC - EMV = $1,575 - $800 = $775
Table 1: Expected Incomes from Spot, Long-term Contract and Short-term Contract, and Profits for Various Planning Approaches ([euro]) (*) Planning approach E[Spot] E[LC] E[SC] E[Profit] % of STO STO 5,370 12,600 0 6,150 100.0 DET 5,370 12,600 0 5,970 97.1 Avg DETd 6,116 11,950 0 6,066 98.6 SA_c 19,900 0 0 7,900 128.5 SA_d 13,726 0 5,198 6,924 112.6 SA_e 13,726 0 4,673 6,399 104.1 SA_f 4,770 11,900 0 4,670 75.9 Avg SA 13,031 2,975 2,468 6,473 105.3 EVPI -2,582 2,975 -69 323 5.3 VSS 9,497 -11,950 2,537 83 1.4 (*) All approaches have an expected purchase cost of [euro]6,000.
The discounted lifetime EVPI was U.S.$78 per person.
Given the EVPI of U.S.$709 million, additional research to study the ability of telemedicine to detect other eye conditions is warranted.
One can also calculate the worth of acquiring additional information through further research, by calculating the EVPI (Claxton and Posnett 1996).
Additionally, we assessed the EVPI, and for which topics further research is most valuable.
The EVPI is the expected value of obtaining perfect knowledge of the "true" values of all parameters.
For the base case analysis, the uncertainty surrounding the decision whether or not to implement shared care resulted in an EVPI of 87 [euro] per person, given a ceiling ratio of 40,000 [euro].
Additionally, the EVPI for parameters was calculated.