Information dimension, information overload and decision quality

Abstract

The impact of information load (both under and overload) on decision quality is an important topic, yet results of empirical research are inconsistent. These mixed results may be due to the fact that information load itself is a function of information dimension. A meta-analysis of 31 experiments reported in 18 empirical bankruptcy prediction studies was conducted to test the effect of two information dimensions: information diversity and information repetitiveness. Results indicated that both information dimensions have an adverse impact on decision quality: provision of either diverse or repeated information can be detrimental to prediction accuracy. The findings have implications for information suppliers and researchers who are interested in improving the quality of human decision making.

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