Large language models (LLMs) exhibit a range of human-like decision-making behaviors, but whether these reflect similar underlying mechanisms or surface-level mimicry remains unclear. We evaluate whether LLM context sensitivity aligns with a cognitive economic theory that explains human behavior through problem categorization and attention allocation. Across 12 open-source and commercial LLMs on a novel 140,000-trial product choice benchmark, context induces human-like shifts in choice and problem categorization, but does not reliably reweight attention between features like price and quality. Neither scale nor chain-of-thought reasoning reliably attenuates context sensitivity or generates human-like behavior. These results suggest that LLM decision mechanisms are distinct from human ones.
Figures & tables
Figure 1: Product choice questions evaluate LLM decisions against human behavior and cognitive theory. ( Left ) Hedonic and functional context cues, drawn from the consumer choice literature, frame a binary choice between standard and premium products. ( Right ) Given human behavior explained by Bordalo et al. (2026b) , we predict that hedonic framing shifts LLM choices towards the premium option, reweights attention from price to quality, and produces larger effects when baseline categorization is ambiguous.
Cue Type
Hedonic Cue
Functional Cue
References
Purchase trigger
Exploring the category out of curiosity or considering an upgrade
Routine replacement or replenishment without overpaying
Bell et al. (2011)
Retail architecture
Browsing a curated specialty page with staff picks and quality notes
Browsing a marketplace comparison page sorted by price with filters
Koschmann and Isaac (2018)
Payment source
Paying with a gift card or credit, keeping any unspent balance
Paying from a checking account, keeping any unspent balance
Thaler (1999)
Justification
Recently earned a small reward; this feels like a reasonable treat
Ordinary purchase with no special reason; just a practical choice
Okada (2005)
Reasoning frame
Focused on why the product would improve the user experience
Focused on how to complete the purchase and the concrete tradeoffs
Liberman and Trope (1998)
Table 1: Contextual purchasing cues. Each cue type includes a hedonic/functional pair drawn from the consumer choice literature. Claude Sonnet-4.6 instantiates these templates into concrete cues for each product, designed to shift consumption framing without changing product utility.
Figure 2: Models match human context effects on choices, but diverge on feature sensitivity. ( Left ) Difference in premium choice rates between hedonic and functional cues. Shaded region indicates human-like behavior for all panels—here, hedonic cues lead to more premium choices. See Appendix Figure 5 for the difference in premium choice rates relative to the neutral condition. ( Right ) Difference in standardized price (x-axis) and quality (y-axis) sensitivity between hedonic and functional cues, estimated by linear regression on choice logits (see Section 4 ). Shaded region denotes behavior where hedonic cues attenuate (negative) price sensitivity and amplify quality sensitivity. Percentages report the share of model-cue combinations in each quadrant. All bars are 95% CIs.
Figure 3: Context effects follow a categorization process: in-context evidence shifts categorization (left), and ambiguity amplifies cue effects (center, right). Panels pool across Gemma 3 (4B, 12B, 27B) and Qwen 3 (4B, 8B, 14B, 32B). ( Left ) Difference in premium choice rate relative to nhed=4 (midpoint) as a function of the number of hedonic cues among eight in-context examples. ( Center ) Difference in premium choice rate between hedonic and functional cues (de-meaned by model) binned by product hedonic-ness scores. ( Right ) Difference in (premium - standard logit) between hedonic and functional cues as a function of (premium - standard logit) in neutral choice problems, both standardized to neutral-SD units. All bars are 95% CIs.
Figure 4: Scale and reasoning do not reliably reduce context sensitivity. ( Left ) Difference in premium choice rate between hedonic and functional cues for Qwen 3 (paired non-thinking/thinking) and Gemma 3 (non-thinking) model families. ( Right ) Difference in standardized price (x-axis) and quality (y-axis) sensitivity between hedonic and functional cues for Qwen models in thinking/non-thinking modes. Shaded region denotes human-consistent behavior. All bars are 95% CIs.
Appendix figures & tables9 assets
Supplementary material from the paper’s appendix.
Appendix
Figure 5: Premium choice rates by model and cue condition on the baseline dataset , for all sixteen configurations (twelve models plus the four thinking modes; (T) denotes thinking mode). ( Top ) Difference in premium choice rate between hedonic (functional) cues and the neutral condition. ( Bottom ) Difference in premium choice rate between hedonic and functional cues, averaged across cue types. All bars are 95% CIs.
Figure 6: Cue effects on feature sensitivity under alternate regression specifications. The same quantity as Figure 2 (right), re-estimated with differences in feature values instead of log ratios: absolute differences (left; price sensitivity per dollar, quality sensitivity per rating point) and per-product-SD standardized differences (right). Percentages report the share of model-cue combinations in each quadrant.
Figure 7: Distribution of hedonic-ness scores across the 100 products. Scores from the GPT 5.4 judge ( Section A.5 ); 0 = purely functional, 100 = purely hedonic. The distribution is right-skewed (median 33), with labeled products marking representative points.
Figure 8: Effect of thinking mode on price and quality sensitivity, by cue type. Difference in standardized price (x-axis) and quality (y-axis) sensitivity between hedonic and functional cues for Qwen models in thinking/non-thinking modes. Shaded region denotes human-consistent behavior. Figure 4 (right) shows the justification and reasoning frame dimensions. All bars are 95% CIs.
Fishing reel outdoor & sporting goods | price ratio 2.33
Premium
Aluminum spinning reel with sealed drag. Aluminum alloy body and rotor, 6 ball bearings, machined aluminum spool with sealed multi-disc drag, suited for light saltwater fishing.
$69.99
Standard
Graphite spinning reel, entry level. Graphite composite body and rotor, 3 ball bearings, aluminum spool with basic anti-reverse mechanism, suited for freshwater fishing.
$29.99
Electric toothbrush personal care & grooming | price ratio 3.13
Premium
Rechargeable oscillating toothbrush. Single oscillating speed, USB charging cable, plastic handle, one replacement brush head and two-minute timer.
$24.99
Standard
Basic battery-powered toothbrush. Single-speed vibrating motor, AA-battery powered, fixed plastic handle, one nylon bristle brush head included.
$7.99
Appendix
Table 2: Two example product pairs. Each row shows the option name (bolded) and description generated by Claude Sonnet 4.6, along with its price. Descriptions are length-matched and brand-free, and option order (A=premium vs. A=standard) is counterbalanced across trials.
Dimension
Pole
Cue
Purchase trigger
Hed.
I’m shopping for a chef’s knife because I’ve been curious about the category and I’m considering an upgrade to my everyday cooking setup.
Func.
I’m shopping for a chef’s knife because my current one has worn down and I want a solid replacement without overpaying.
Retail architecture
Hed.
I’m browsing for a chef’s knife on a curated kitchenware shop page where staff picks include quality notes on blade feel and durability.
Func.
I’m browsing for a chef’s knife on a marketplace comparison page sorted by price, with filters, unit costs, and price-match language displayed.
Payment source
Hed.
I’m looking for a chef’s knife and will be paying with a gift card I received as a birthday present. Any unspent amount remains mine.
Func.
I’m looking for a chef’s knife and will be paying with money from my regular checking account. Any unspent amount remains mine.
Appendix
Table 3: Cue templates instantiated for one product (chef’s knife). Each of the five dimensions has a paired hedonic/functional cue. Cues for the remaining 99 products are generated analogously via Claude Sonnet 4.6. Appendix A.3 provides the full prompt template for choice questions.
Family
Trials
H.
F.
N.
Baseline
8,800
4,000
4,000
800
Price sweep
88,000
40,000
40,000
8,000
Quality sweep
44,000
20,000
20,000
4,000
ICL mix
36,000
0
0
36,000
Total
176,800
Appendix
Table 4: Trial counts per model. “H.”/“F.”/“N.” are hedonic, functional, and neutral conditions. The same 800 option pairs are reused across all four experiment families, but not every model is evaluated in each experiment.
Panel A: baseline tier ratings ( yindex=0 )
Tier
Label
Mean
SD
n
1
budget
30.4
9.2
100
2
economy
54.6
11.8
100
3
midrange
72.9
8.7
100
4
premium
84.8
4.3
100
5
luxury
89.8
3.7
100
Appendix
Table 5: GPT 5.4 quality ratings. Each option is rated five times independently from 0 to 100 with a rubric that ignores price and brand and scores only descriptive attributes ( Section A.5 ). Panel A: mean rating per baseline tier across the 100 products ( yindex=0 ). Panel B: mean rating across the five quality-sweep perturbations.
LLM decision-making studies how language models choose, act, seek information, and allocate resources under goals, uncertainty, constraints, and social pressures.