The cognitive-energetical approach, which relies on the discrete stage model of additive factors logic, asserts that basal energetical mechanisms such as arousal act via particular information processing stages. The anaesthetic gas nitrous oxide (N2O) produces additivity at four of the five perceptual and central stages, but its effect on the remaining stage, feature extraction, is unknown. We investigated this stage using 12 subjects who performed a visual oddball experiment in which two levels of stimulus quality, three levels of breathing mixture (air, 25% and N2O, 35%) and three levels of stimulus probability were combined factorially. Reaction time (RT) and P300 were collected simultaneously. The RT results showed additivity between N2O, stimulus quality and probability. P300 latency also showed additivity between N2O and stimulus quality. Since the discrete stage model cannot easily account for the exhaustive additivity displayed by N2O on perceptual and central stages, we performed a continuous cascade model simulation to determine whether it is better able to account for this phenomenon. We found that exhaustive additivity could be reproduced by adding a time delay to the activation rate of the first stage, which we interpreted as evidence that N2O causes slowing prior to stage processing. To account for these results, we propose a two-tiered energetical model in which a lower GABAerg ic reticular system (influenced by N2O) modulates the activity of upper 'arousal-like' multidimensional ascending thalamocortical systems. The applicability of this model to drugs such as the barbiturates, the benzodiazepines and ethanol, as well as the aging process, is discussed. (C) 2000 Elsevier Science B.V. All rights reserved.