Quarterly Journal of Economics Vol. 141 No. 3 2026

A Cognitive Theory of Reasoning and Choice

Pedro Bordalo¹; Nicola Gennaioli²; Giacomo Lanzani³; Andrei Shleifer⁴

¹ University of Oxford · ² Bocconi University · ³ University of California, Berkeley · ⁴ Harvard University

Abstract

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 recategorization. We show that heterogeneous and unstable representations of a choice problem unify major biases in judgment and decision making.

DOI

10.1093/qje/qjag023

Volume

141

Issue

3

Pages

1921-1963

Language

en

Sources

openalex crossref

Cite

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