The anchoring effect in business intelligence supported decision-making. Issue 2 (3rd April 2019)

• Record Type: Journal Article
• Authors: Ni, Feng; Arnott, David; Gao, Shijia
• Is Part Of: Journal of decision systems. Volume 28:Issue 2(2019)
• Page Start: 67
• Page End: 81
• Publication Date: 2019-04-03
• Subjects: Business intelligence -- cognitive bias -- anchoring effect -- behavioral economics; Decision support systems -- Periodicals; Management information systems -- Periodicals; Information resources management -- Periodicals; Information storage and retrieval systems -- Periodicals; Management -- Communication systems -- Periodicals; Decision support systems; Information resources management; Information storage and retrieval systems; Management -- Communication systems; Management information systems; Periodicals; 658.40305
• DOI: 10.1080/12460125.2019.1620573
• Languages: English
• ISSNs: 1246-0125

Abstract

ABSTRACT: This article reports on a study that is part of a larger project on how Business intelligence (BI) can effectively support a range of decisions made by different decision-makers through the lens of behavioural economics. This study examines one cognitive bias, the anchoring effect. A laboratory experiment was conducted where participants used a BI system to make a forecast. Two anchors with the same value were presented; a spurious anchor and a plausible anchor. We were interested if the use of a BI system would mitigate the negative consequences of the anchoring effect. Our results show BI system use mitigates the effect of a spurious anchor, but not a plausible anchor. That is, despite the significant expenditure on BI, decision-makers can still be subject to major biases and make less rational decisions. This study indicates that cognitive bias is an important topic for BI supported decision makingresearch and practice.