Gist is sophisticated yet simple: Fuzzy-trace theory’s developmental approach to individual differences in judgment and decision-making

In this chapter, we review fuzzy-trace theory (FTT), a theory of reasoning and decision-making that differs from traditional models and posits that reliance on bottom-line gist processing is the basis for advanced cognition (Reyna, 2012). We discuss gist and verbatim, two distinct forms of mental representation that are encoded and retrieved independently and in parallel. Gist and verbatim representations exist on a hierarchy, from the most general, “fuzziest” representation to the most specifi c, detailed type of representation. We address individual differences in processing preference. FTT accounts for developmental differences in judgment and decision-making by explaining that both types of processing (bottom-line gist and precise verbatim) improve with age, but that ultimately adults rely mainly on gist processing to make decisions.