Abstract
This paper proposes a normative model for decision-making regarding the purchase of additional information with respect to a new product decision. A macro structure of the decision leads to an analytical evaluation of the GO-NO GO alternatives. A formulation for the computation of the expected opportunity loss adapted to this type of problem is then proposed. The value of perfect information on each variable of the model is computed and provides an indication of the sensitivity of the overall results to uncertainty in any particular variable. The value of any proposed research project may then be evaluated by comparing the expected reduction in opportunity loss that might result from the purchase of the information with the cost of such information.
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