Posts tagged Prospect theory
How to quantify value

People always say to me, “But value is just like beauty, it’s in the eye of the beholder”.  OK, so one man’s value can be another man’s poison (to mix metaphors) but there are ways in which you can start to quantify value.  We always use the equation ‘Value = Benefits minus Cost’, where cost can be price, risk, loss or any other downside.

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