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The difference between the maximum utility computed for the current parameter configuration (e.g. at the current simulation) \(U^*\) and the current utility of the intervention associated with the maximum utility overall.

Usage

compute_ol(Ustar, U, best)

Arguments

Ustar

Maximum utility value (sim x k)

U

Net monetary benefit (sim x k x interv)

best

Best intervention for given willingness-to-pay (k)

Value

Array with dimensions (sim x k)

Details

In mathematical notation, $$\textrm{OL}(\theta) := U^*(\theta) - U(\theta^\tau)$$

where \(\tau\) is the intervention associated with the overall maximum utility and \(U^*(\theta)\) is the maximum utility value among the comparators in the given simulation. The opportunity loss is a non-negative quantity, since \(U(\theta^\tau)\leq U^*(\theta)\).

In all simulations where the intervention is more cost-effective (i.e. when incremental benefit is positive), then \(\textrm{OL}(\theta) = 0\) as there would be no opportunity loss, if the parameter configuration were the one obtained in the current simulation.

See also