Jean Piaget's theory of cognitive development outlines four stages: sensorimotor, preoperational, concrete operational, and formal operational. The sensorimotor stage from birth to age 2 involves developing object permanence through interacting with the environment. During the preoperational stage from ages 2 to 7, children can use symbols and language but still cannot perform logical operations. Piaget found that preoperational children fail conservation tasks because they cannot apply the logical principles of reversibility, compensation, and identity.