Are Preferences Monotonic? Testing Some Predictions of Regret Theory
AbstractIn this paper, the authors demonstrate that the assumption of "regret aversion," which has been invoked in regret theory to explain several well-documented violations of expected utility theory, also implies the existence of strict preferences between some stochastically equivalent actions and implies certain systematic violations of monotonicity. The authors report an experimental test of these predictions. They find that, while choices between stochastically equivalent actions are entirely consistent with expected utility theory, there is clear evidence of the monotonicity violations predicted by regret theory. Copyright 1992 by The London School of Economics and Political Science.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 59 (1992)
Issue (Month): 233 (February)
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Freemantle, Nick, 1996. "Are decisions taken by health care professionals rational? A non systematic review of experimental and quasi experimental literature," Health Policy, Elsevier, vol. 38(2), pages 71-81, November.
- Wong, Kit Pong, 2014. "Regret theory and the competitive firm," Economic Modelling, Elsevier, vol. 36(C), pages 172-175.
- Michele Bernasconi, 2002. "How should income be divided? questionnaire evidence from the theory of “Impartial preferences”," Journal of Economics, Springer, vol. 9(1), pages 163-195, December.
- Bruno S. Frey, .
"Knight Fever towards an Economics of Awards,"
IEW - Working Papers
239, Institute for Empirical Research in Economics - University of Zurich.
- Hirigoyen, Gérard & Labaki, Rania, 2012. "The role of regret in the owner-manager decision-making in the family business: A conceptual approach," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 118-126.
- Wong, Kit Pong, 2012. "Production and insurance under regret aversion," Economic Modelling, Elsevier, vol. 29(4), pages 1154-1160.
- Starmer, C., 1998.
"Experimental Economics: Hard Science or Wasteful Tinkering,"
University of East Anglia Discussion Papers in Economics
9802, School of Economics, University of East Anglia, Norwich, UK..
- Starmer, Chris, 1999. "Experimental Economics: Hard Science or Wasteful Tinkering?," Economic Journal, Royal Economic Society, vol. 109(453), pages F5-15, February.
- Krähmer, Daniel & Stone, Rebecca, 2005. "Regret in Dynamic Decision Problems," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 71, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Smith, Richard David, 1996. "Is Regret Theory an alternative basis for estimating the value of healthcare interventions?," Health Policy, Elsevier, vol. 37(2), pages 105-115, August.
- Roth, Gerrit, 2006. "Predicting the Gap between Willingness to Accept and Willingness to Pay," Munich Dissertations in Economics 4901, University of Munich, Department of Economics.
- Chris Starmer, 1996. "Explaining risky choices without assuming preferences," Social Choice and Welfare, Springer, vol. 13(2), pages 201-213, April.
- Han Bleichrodt & Jose Luis Pinto-Prades, 2006. "A New Type of Preference Reversal," Working Papers 06.18, Universidad Pablo de Olavide, Department of Economics.
- Humphrey, Steven J., 1996. "Do anchoring effects underlie event-splitting effects? An experimental test," Economics Letters, Elsevier, vol. 51(3), pages 303-308, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.