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Yes, information can lead to poor choices. Psychologist/researchers at the University of Texas at Austin have learned that when people have complete information about the short term and long term benefits of a decision, they generally make a selection that leads to short term rewards. This tendency can come into play as people make design-related choices.
“Armed with Information, People Make Poor Choices, Study Finds.” 2010. Press release, University of Texas, http://www.utexas.edu.

