Hyötyero

Hyötyero is a Finnish term used in economics and decision analysis to describe the difference in perceived benefit or utility between two alternatives. The word combines hyöty, meaning benefit or utility, and ero, meaning difference. In practice, hyötyero represents the amount by which one option yields more (or less) utility than another, given a specified utility function or monetary surrogate.

In cost-benefit analysis, welfare economics, and policy evaluation, hyötyero is used to compare interventions, products, or policies. It can be thought of as the numerator in decision criteria that weigh benefits, and it is often considered together with costs to assess overall desirability, such as in net-benefit or benefit-cost frameworks. The concept emphasizes relative advantage rather than absolute levels of benefit.

Measurement of hyötyero requires a Utility function or an agreed monetary proxy. Utilities can be derived from willingness-to-pay studies, quality-adjusted life years in health economics, or other scales that translate benefits into comparable units. Because the choice of utility function influences the hyötyero value, estimates are subject to methodological and normative assumptions and uncertainty.

Example: if option A yields a utility of 120 units and option B yields 95 units, hyötyero = 25 units in favor of option A. If the two options are evaluated alongside costs, the decision criterion would consider whether the hyötyero sufficiently compensates for any additional costs.

In Finnish literature, hyötyero is a general concept rather than a fixed metric, and may be described in terms of utility gain, benefit differential, or net benefit depending on context. It is closely related to, but distinct from, concepts like marginal benefit and net present value.