# Perfect Information

In [[strategy]], perfect information is hypothetical information
that would eliminate some defined [[uncertainty]].

## Expected Value of Perfect Information

Expected value of perfect information (EVPI)
is the price that one would be willing to pay
in order to gain access to perfect information.

The perceived *value* of decreased uncertainty
must be weighed against its *cost*.

This concept provides the basis for the solution of one or more [[open-problems]].
To reduce [[risk]] in [[construction-estimating]],
an organization pays in estimator hours.
These hours have a direct cost in salary and benefits,
however the greater cost is the opportunity cost
of tying up an estimator who could otherwise be starting a new project.

In many cases, the utility of doubled throughput
far outweighs the increased risk of individual bids.