Comments on: Cost-benefit analysis versus benefit-only analysis http://www.johndcook.com/blog/2009/01/28/cost-benefit-analysis-versus-benefit-only-analysis/ The blog of John D. Cook Sat, 31 Jul 2010 07:45:27 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Sarah http://www.johndcook.com/blog/2009/01/28/cost-benefit-analysis-versus-benefit-only-analysis/comment-page-1/#comment-12520 Sarah Thu, 29 Jan 2009 03:11:19 +0000 http://www.johndcook.com/blog/?p=1374#comment-12520 When decision analysis is used to evaluate differential clinical paths, generally death is set at a utility of zero. But really, isn't it possible that there are fates worse than death? When decision analysis is used to evaluate differential clinical paths, generally death is set at a utility of zero. But really, isn’t it possible that there are fates worse than death?

]]> By: Danny http://www.johndcook.com/blog/2009/01/28/cost-benefit-analysis-versus-benefit-only-analysis/comment-page-1/#comment-12516 Danny Thu, 29 Jan 2009 00:22:59 +0000 http://www.johndcook.com/blog/?p=1374#comment-12516 As long as you're going down this route, shouldn't you consider the cost of coming up with the utility function? I would think that in many cases, if you did a cost-benefit analysis of whether it's worthwhile to to work out a utility function, you'd probably decide not to. Like you say, people don't like them, they're full of holes, and difficult to come by. On top of that, you're likely paying somebody a fair chunk of change to do it. Seems like a perfect setting for decision theory to step in and guide us towards the rational choice. As long as you’re going down this route, shouldn’t you consider the cost of coming up with the utility function?

I would think that in many cases, if you did a cost-benefit analysis of whether it’s worthwhile to to work out a utility function, you’d probably decide not to. Like you say, people don’t like them, they’re full of holes, and difficult to come by. On top of that, you’re likely paying somebody a fair chunk of change to do it. Seems like a perfect setting for decision theory to step in and guide us towards the rational choice.

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