2 An Overview of the Basics

DOI: 10.1201/9781003196174-2

This chapter presents an overview of the basics of cost-effectiveness analysis (CEA), as practiced by the author. The method is essentially one in which comparisons are made between a set of well-defined alternatives. The costs and effectiveness of each alternative is estimated. Absolute values are less important than relative values for each alternative. Surrogates are used as effectiveness measures, which are called measures of effectiveness (MOEs). This method takes the point of view that there are many domains where one may apply the CEA, such as transportation systems, warfare systems, and the information system. Each domain has a history of experience that is called an ensemble ...

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