Beyond similarity: Exploring cognitive bias and decision complexity in multi-alternative choice tasks

Abstract

This study investigates the conditions under which the similarity effect, where individuals prefer dissimilar choices when faced with similar alternatives, fails to manifest, and challenges established theories suggesting that individuals simplify decision-making by focusing on dissimilar options in complex situations. Using a series of experiments grounded in established theoretical frameworks, the study explores how decision complexity and cognitive load affect the manifestation of the similarity effect. Participants were tasked with making choices under conditions of uncertainty and cognitive strain to analyze shifts in decision-making strategies. The results reveal that in high-complexity situations, individuals do not prioritize dissimilar options as previously assumed; instead, they shift their focus to evaluating cognitive aspects of outcomes, such as trade-offs between advantageous and disadvantageous traits. As decision complexity increases, the importance of superficial similarity diminishes, and outcome assessment becomes more crucial. These findings have significant implications for our understanding of decision-making under uncertainty and offer new insights into the cognitive mechanisms involved, with potential applications in fields such as consumer behavior, policy-making, and risk management.