Toward a dynamic model of decision strategy change

A dynamic model of strategy change was proposed and evaluated as an extension of traditional cost-benefit models of strategy selection. This new model addressed the decision making process involved in replacing a strategy-in-use with an alternative strategy on a recurring decision task. The strategy-in-use is referred to as an adopted strategy, to convey a sense of psychological ownership and commitment on the part of the decision maker. Alternative strategies, those residing in the decision maker's repertoire but not used, are referred to as orphan strategies. It was hypothesized that experience, operationalized as number of iterations of strategy implementation, affects the decision maker's perceptions of the adopted strategy, beliefs about orphan strategies and willingness to switch between the two. Hypotheses concerning changes in adopted strategy costs and benefits as a function of experience, and the link between adopted and orphan strategies, were presented in mathematical form. The full statement of the model takes the form of a utility analysis equation, where variations in strategy costs and benefits determine the utility of changing strategies.; In Study 1, subjects performed a series of administrative decisions using one of a pair of multiattribute choice strategies established during a training session. During task performance, a change in task demands was enacted as an impetus to changing strategies. Results indicated that increased experience using a particular strategy decreased the probability of strategy change in response to the shift in task demands.; Study 2 demonstrated that perceptions of strategy cost and benefit properties change during a period of strategy use. The subjective accuracy associated with a strategy increased as experience accrued, while the perceived difficulty of the strategy decreased. Results also indicated that, in the case of subjective accuracy, increased experience with the adopted strategy led to a change in the perception of orphan strategies. It was established that the similarity of the adopted strategy to the orphan strategy moderated the relationship between adopted strategy experience and orphan strategy perceptions. Theoretical and practical implications of the Dynamic Model of Strategy Change are discussed.