An economics perspective on the usefulness of decision support systems

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4 Scopus citations


Decision making in a decision support system is modeled as a sequential information acquisition process with noisy information sources and costly information assimilation. The net benefit from using a Decision Support Systems approach is compared to that from a Programs approach. DSS provides greater benefits for ad-hoc decisions and this advantage increases as the information sources become noisier. Programs are preferred for recurrent decisions. Increased assimilation costs decrease the number of alternatives examined.

Original languageEnglish (US)
Pages (from-to)293-305
Number of pages13
JournalDecision Support Systems
Issue number4
StatePublished - Aug 1992
Externally publishedYes


  • Ad-hoc decisions
  • Bayesian update cost
  • Decision Support Systems
  • Economics model
  • Information assimilation cost
  • Institutional Decision Support Systems
  • Noisy information
  • Planning
  • Programs
  • Recurrent decisions

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • Information Systems and Management


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