compute_ol: Compute Opportunity Loss
In BCEA: Bayesian Cost Effectiveness Analysis

compute_ol

R Documentation

Compute Opportunity Loss

Description

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)

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.