An Examination of Decision Confidence and Illusion of Control in a Group Setting

Decision confidence is a factor in indicating the acceptance and use of a DSS. Prior research has shown the presence of both over and under confidence resulting in DSS use and both could lead to disastrous outcomes for the organization. There are very few methodologies or strategies designed to address issues related to decision confidence and user calibration a group setting. Achieving perfect calibration avoids the negative impacts on organizational performance that can occur in the presence of either over or under confidence. To address this issue, Kasper develops the theory of DSS design. Kasper emphasizes the need for empirical work and for testing of the theory. We present an incentive-based experimental approach for aiding in achieving the goal of high levels of user calibration in a business lending situation. The technique draws directly from economic literature. The technique described in this study is easy to implement and can be an additional mechanism in the DSS designer's tool bag.