Folk standards of sound judgment: Rationality Versus Reasonableness.

Normative theories of judgment either focus on rationality (decontextualized preference maximization) or reasonableness (pragmatic balance of preferences and socially conscious norms). Despite centuries of work on these concepts, a critical question appears overlooked: How do people's intuitions and behavior align with the concepts of rationality from game theory and reasonableness from legal scholarship? We show that laypeople view rationality as abstract and preference maximizing, simultaneously viewing reasonableness as sensitive to social context, as evidenced in spontaneous descriptions, social perceptions, and linguistic analyses of cultural products (news, soap operas, legal opinions, and Google books). Further, experiments among North Americans and Pakistani bankers, street merchants, and samples engaging in exchange (versus market) economy show that rationality and reasonableness lead people to different conclusions about what constitutes good judgment in Dictator Games, Commons Dilemma, and Prisoner's Dilemma: Lay rationality is reductionist and instrumental, whereas reasonableness integrates preferences with particulars and moral concerns.