Incredible Information on the Internet: Biased Information Provision and a Lack of Credibility as a Cause of Insufficient Information Quality

In the literature, several statements can be found that predict a development towards complete market transparency through the usage of information available on the Internet. This would put individuals, who need to make decisions in such markets, in a better position. However, market transparency is closely connected to the quality of information available. Consequently only if the information on the Internet is of high quality, will a rise in market transparency be observed. The aim of this paper is to contribute to the understanding of information quality in decision processes. Eight criteria of information quality can be derived from the semiotic concept of information. In order to address their roles in the information exchange process, the criteria are split into two groups: one, which is influenced by information providers, and one, which is influenced by information recipients. Moreover, this paper develops two arguments against the development of complete market transparency. The first argument is that information providers may strive to avoid market transparency as they are actually not interested in complete market transparency. The second argument explains insufficient market transparency by the characteristics of how information is presented on the Internet and suggests that particular information suffers a lack of credibility. Both arguments are based on the eight criteria of information quality.