This paper examines two examples of using the Bayesian approach to arrive at the value of management information. In the first, the value of market research information for the introduction of a new product is calculated. The author concludes that such valuation is valid as long as the user is not too mechanistic and realizes the valuation is built on estimates. The second example involves production control information. Due to the time-based nature of some of the variables, the Bayesian approach fails to arrive at a usable valuation.

This is the first of four paper by this author. Two of those (yet to be published) will examine other approaches; the final paper will synthesize them all into a practical approach. This paper alone does not provide much help to the practitioner trying to decide the worth of generating information for a management decision. But it is well written and good as far as it goes. I am hopeful that this paper, combined with the next three, will generate some practical advice.