The role of user capability and incentives in group and individual decision support systems: An economics perspective

We model the decision making processes in decision support systems and programs as sequential information acquisition processes and compare their usefulness. A Bayesian decision maker is shown to be indifferent between the two approaches. In contrast, a decision maker with bounded rationality prefers the decision support systems approach. The model is extended to group decision support systems where the interaction between the decision makers and the group facilitator is modelled as a non-cooperative economics game. We show that in some instances the group facilitator would prefer precommitment to an interaction plan rather than allow evolutionary planning of the interaction. This planning is similar to that in a program and may take the form of an organization chart.