Categorical Engagement and the Contingent Nature of Typicality Effects

Abstract

Market categories can favor typical members over atypical ones, yet this “categorical imperative” operates inconsistently across contexts. We argue that typicality effects depend on how evaluators engage with categories during search. Using behavioral simulation in which participants search a large database of companies for competitors, we distinguish between searches that explicitly invoke industry classifications and those using alternative methods, and measure goal-category congruence through semantic alignment between evaluators’ objectives and the categories they employ. We find that typical companies become more likely to be selected in category-based searches; other searches produce no typicality effects. Among category-based searches, goal-category congruence moderates the effect: typicality strongly predicts selection when goals and categories misalign but becomes irrelevant when they align well. These findings identify a specific microprocess through which categorical effects become contingent, offering a process-level explanation for variation documented across audiences, producer characteristics, and evaluation contexts.