appraisal

Cognitive appraisal (also called simply 'appraisal') is the subjective interpretation made by an individual to stimuli in the environment. It is a component in a variety of theories relating to stress, mental health, coping, and emotion. It is most notably used in the transactional model of stress and coping, introduced in a 1984 publication by Richard Lazarus and Susan Folkman. In this theory, cognitive appraisal is defined as the way in which an individual responds to and interprets stressors in life. A variety of mental disorders have been observed as having abnormal patterns of cognitive appraisal in those affected by the disorder. Other work has detailed how personality can influence the way in which individuals cognitively appraise a situation.
The reframing of stimuli and experiences, called cognitive reappraisal, has been found "one of the most effective strategies for emotion regulation."
Cognitive appraisal also began to play an enormous role in the development of Economic Theory after the marginal revolution. During which, the classical objective “Labour theory of value” was displaced by the “Subjective theory of value,” where cognitive appraisals on behalf of acting agents became the basis of all price signals and exchange ratios observed in the market.

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