Many ship fittings in EVE Online state in their description something along the lines of:
Penalty: Using more than one type of this module or similar modules that affect the same attribute on the ship will be penalized.
What is the nature of this penalty? Is it a hard-and-fast mathematical rule? Will using, for example, two of an item be less effective than using one, or is it a case of diminishing returns?
11 Answer
From the UniWiki on Stacking Penalty: ( A broken record, I know )
The Formula
The stacking penalty for module number n is S(n) = 0.5^(((n-1) / 2.22292081) ^2)
The Numbers
1st mod: 100.0% effectiveness
2nd mod: 86.9% effectiveness
3rd mod: 57.1% effectiveness
4th mod: 28.3% effectiveness
5th mod: 10.6% effectiveness
6th mod: 3.0% effectiveness
As is clear, stacking more than 3 or 4 modules or rigs - unless you really have nothing else at all that you could fit there - that affect the same stat is fairly pointless, as your benefit is so tiny.