This paper discusses how we understand and use a concept or the meaningof a general term to identify the objects falling under the term. There aretwo distinct approaches to research on the problems of concepts and meaningthe psychological approach and the formal (or logical) approach. My majorconcern is to consider the possibility of reconciling these two differentapproaches, and for this I propose to build a psychologically plausibleformal system of conceptualization. That is, I will develop a theory-basedaccount of concepts and propose (...) an explanation of how an agent activates aperspective (which consists of theories) in response to a situation in whichreasoning using a concept is called for. Theories are represented as sets offacts and rules, both strict and defeasible. Each theory is organized in acoherent perspective which stands for an agent's mental state or an agent'smodel of another agent's perspective. Perspectives are organized intohierarchies and the theory for a concept in one perspective may defeat thetheory for the same concept in another perspective. Which perspective issuperior is context-dependent. (shrink)