In uncertain environments, managers often engage in broad exploration—pursuing diverse opportunities in parallel—to gather information and reduce uncertainty before committing to a promising option. However, we argue that the benefits of this strategy depend critically on the information environment, particularly the cost of acquiring meaningful signals. Using a multi-armed bandit model, we show that, when information is costly to obtain, broad exploration not only decelerates but also distorts learning processes, hampering knowledge development. This introduces a breadth-depth dilemma: while broad exploration prevents bypassing promising opportunities, in-depth investment is needed to identify the best ones. Our findings highlight information environments as a key factor shaping exploration outcomes, offering theoretical contributions to the learning literature and practical implications for managers and entrepreneurs.
