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why is
value of perfect information = expected value of profit with perfect information – expected value of profit without perfect information
and why is expected value of profit with perfect information > expected value of profit without perfect informationIf you have perfect information before you make the decision then you can make better decisions.
The most that you will be prepared to pay for the perfect information is the extra profit that the perfect information would give you.
Have you watched my lecture on this? (on this website)
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