this paper introduces a three-item “Cognitive Reflection Test”
(CRT) as a simple measure of one type of cognitive ability. I will show that CRT
scores are predictive of the types of choices that feature prominently in tests of
decision-making theories, like expected utility theory and prospect theory. Indeed,
the relation is sometimes so strong that the preferences themselves effectively
function as expressions of cognitive ability—an empirical fact begging for a theoretical
explanation.