A separate study found the highest setting cost up to 42 times more on easy tasks and still lost some tasks that lower effort solved. LoCo trims reasoning output by roughly 40% without losing accuracy, and Claude Code now sets effort per fork.
From the Field Notes:
- How Much Does Reasoning Effort Affect Score and Cost? (2026-11-04)
- What Effort Level Should I Choose? On the Economics of Reasoning Effort in LLM Agents (2026-11-04)
- LoCo: local preference learning cuts reasoning-model output by roughly 40-45% without losing accuracy (2026-11-04)
- Release v2.1.318: anthropics/claude-code (2026-11-04)