Uncovering the Value of Information

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This chapter explores the economic constraints of measurement and computing the value of information, disrupting traditional measurement practices in decision-making processes. It emphasizes the significance of including considerations like cancellation risk and technology adoption rate in business modeling to enhance success rates of new technologies. The discussion extends to applying the concept of value of information in personal decision-making scenarios, highlighting methods to reduce uncertainty and maximize opportunities.

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Can we measure everything that matters to us? When is measuring the correlates of a thing pretty much just as good as measuring the thing itself? Why are some people resistant to measuring certain things? What are some things people should be measuring but aren't? What's the connection between measuring things and assigning probabilities to events? How much do we know about how well human intuition performs against "doing the math"? How inconsistent are we at applying our own principles in decision-making? What kinds of calibration training are effective? What is "value of information"? What is the Rule of 5? What are the top three things we can do to improve our decision-making?

Douglas Hubbard is an author, consultant, and recognized expert in decision theory and risk analysis. He has written several books on measurement and measuring risk. His work spans various industries including insurance, finance, pharmaceuticals, aerospace, military, energy, government, tech, and nonprofit organizations. Connect with Doug on LinkedIn, email him at dwhubbard@hubbardresearch.com, or learn more about his work at hubbardresearch.com.

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