A cognitive theory of reasoning and choice

Journal article

We present a theory of choice in which attention to the features of options is determined by the decision maker’s categorization of the current problem in a set of problems she solved in the past. Categorization depends on goal-relevant and contextual problem-level features. The model yields heterogeneity in attention and choice in a given problem based on different past experiences and instability when changes in irrelevant context cause re-categorization. We show that heterogeneous and unstable representations of a choice problem unify major biases in judgment and decision making.

Authors: Bordalo, P; Gennaioli, N; Lanzani, G; Shleifer, A

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Oxford University Press
• Journal: Quarterly Journal of Economics
• Acceptance date: 2026-04-12
• EISSN: 1531-4650
• ISSN: 0033-5533
• Language: English