Cost-benefit tradeoff mediates the transition from rule-based to memory-based processing during practice.

Practice not only improves task performance but also changes task execution from rule- to memory-based processing by incorporating experiences from practice. However, how and when this change occurs is unclear. We test the hypothesis that strategy transitions in task learning can result from decision-making guided by cost-benefit analysis. Participants learn 2 task sequences and are then queried about the task type at a cued sequence and position. Behavioral improvement with practice can be accounted for by a computational model implementing cost-benefit analysis and the model-predicted strategy transition points align with the observed behavioral slowing. Model comparisons using behavioral data show that strategy transitions are better explained by a cost-benefit analysis across alternative strategies rather than solely on memory strength. Model-guided fMRI findings suggest that the brain encodes a decision variable reflecting the cost-benefit analysis and that different strategy representations are double-dissociated. Further analyses reveal that strategy transitions are associated with activation patterns in the dorsolateral prefrontal cortex and increased pattern separation in the ventromedial prefrontal cortex. Together, these findings support cost-benefit analysis as a mechanism of practice-induced strategy shift.