The effects of decision support and task contingencies on model formulation: A cognitive perspective

This paper takes a cognitive cost-benefit approach to understanding model formulation. Work in the behavioral decision literature on the role of effort and accuracy in choice tasks indicates that effort, or cognitive cost, is a key factor in understanding decision behavior. However, the model formulation literature does not discuss how effort interacts with other factors, such as task complexity and decision aids, to influence model formulation. In this paper, based on the work on the cost-benefit theories of cognition, we posit that two types of effort, namely that associated with building or formulating a model and that associated with utilizing that model in the solution of a problem, will influence model formulation. We then examine how the methods used in the behavioral decision making literature and the reported findings concerning the interaction of effort with task and decision aids can be utilized to understand model formulation.