  This paper explores the economics of Augmented Reality (AR) and Virtual
Reality (VR) technologies within decision-making contexts. Two metrics are
proposed: Context Entropy, the informational complexity of an environment, and
Context Immersivity, the value from full immersion. The analysis suggests that
AR technologies assist in understanding complex contexts, while VR technologies
provide access to distant, risky, or expensive environments. The paper provides
a framework for assessing the value of AR and VR applications in various
business sectors by evaluating the pre-existing context entropy and context
immersivity. The goal is to identify areas where immersive technologies can
significantly impact and distinguish those that may be overhyped.
