Abstract This study corroborates and extends the work of Gupta and King (1997) by testing the effects of several types of feedback on decision performance in the presence of imperfect product cost data. The types of feedback relate to those frequently available to managers—outcome feedback in the form of financial performance reports, information about competitors' outcomes or benchmark feedback, and information relating to the process being managed or process-properties feedback. Subjects in a product-pricing experiment were given (biased) product cost data in conjunction with various combinations of feedback. While subjects receiving only conventional financial performance reports showed some improvement, as predicted, those receiving additional feedback information had superior performance. There were, however, no differences between those receiving benchmark or process-properties feedback with respect to decision performance.
Briers et al. (Wed,) studied this question.