Performance rankings reduce cognitive processing of underlying performance information

Performance information is often presented in a ranked format. Rankings aggregate a multitude of performance dimensions into an overall score. Simultaneously, rankings may constrain cognitive processing of performance information because they distract users’ attention away from the information underlying the ranking calculation. We test this adverse effect using university performance rankings in an eye-tracking experiment based on 1,071 decisions from 153 student-participants. Results show that performance rankings reduce cognitive processing of the underlying performance information, demonstrating the existence of a substitution effect. This study contributes to theorizing about and testing the effectiveness of performance management practices in public management.