# Expected Value of Perfect Information

In [[decision-theory]], the 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.