What is Value of Information (VOI) analysis used for?

• A. To calculate the marginal cost of goods.
• B. To determine payer budgets.
• C. To estimate the value of collecting further information to reduce decision uncertainty and prioritize research.
• D. To assess market share.

Answer: (C)

Value of Information analysis asks how much it would be worth to gather more information before making a decision when outcomes are uncertain. It provides a way to quantify the benefit of reducing uncertainty and to guide where to invest in further research. The idea is to compare the potential improvement in making the right decision (often framed in terms of expected net benefit) with the cost of obtaining additional data. If the value of the information you’d gain exceeds the cost of collecting it, pursuing that additional information is worthwhile. This helps prioritize research by identifying where new data would most reduce decision uncertainty. This approach isn’t about calculating marginal costs, payer budgets, or market share—it’s about valuing information to inform better decisions.