The Effects of Amount of Information Provided and Feedback of Results on Decision Making Efficiency

Abstract

Sixty subjects worked a series of sequential decision making tasks in which the amount of information provided and feedback of results were the independent variables. Data were collected on decision accuracy, confidence in decision accuracy, and judged sufficiency of the information provided. Accuracy, confidence in accuracy, and ratings of sufficiency increased as amount of information provided was increased. Feedback produced increases in decision accuracy only. For forty percent of all correct responses, subjects judged the information provided to be insufficient as a basis for taking action. These data strongly suggest that lack of confidence in their ability to make accurate decisions may cause some decision makers to delay taking action even when they are able to make an accurate decision on the basis of the information available.