Bennett's theorem

Bennett's theorem addresses the value of information in the context of decision-making. It states that, under ideal conditions, the maximum benefit you can gain from additional information about an uncertain situation is limited by the difference between the expected outcome if you knew the true state and the outcome if you didn’t. Essentially, the theorem quantifies how much better your decisions can become with perfect information, providing a theoretical upper bound. It highlights that while information can improve decisions, there are limits to how much it can help, emphasizing the balance between effort to obtain information and the potential benefit gained.