The author examines the relation between CRT scores and two important decision-making characteristics: time preference and risk preference. 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. The author 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. This paper introduces a three-item 'Cognitive Reflection Test' (CRT) as a simple measure of one type of cognitive ability-the ability or disposition to reflect on a question and resist reporting the first response that comes to mind.
