| Abstract: | Based on eye-fixation patterns, strategies for multiattribute binary choice were classified as holistic (within an alternative) or dimensional (within an attribute across alternatives). In a task environment hospitable to both strategies, dimensional processing predominated. Even for alternatives like simple gambles, which require holistic computations, dimensional strategies were used as often as holistic ones. The dimensional strategies were augmented by two procedures that simplify the computations. These simplification procedures reduce cognitive effort at the cost of a relatively small increase in errors. However, for about half the subjects the use of these simplification procedures led to systematic violations of expected utility theory on certain choices. Both the preference for dimensional over holistic strategies and the adoption of simplifying procedures are compatible with the desire to reduce cognitive effort. We propose that strategies are selected to minimize the joint cost of errors and effort. |
