AbstractPreferences may arise from regret, i.e., from comparisons with alternatives forgone by the decision maker. We ask whether regret-based behavior is consistent with non-expected utility theories of transitive choice and show that the answer is no. If choices are governed by ex ante regret and rejoicing then non-expected utility preferences must be intransitive.
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Bibliographic InfoArticle provided by Econometric Society in its journal Theoretical Economics.
Volume (Year): 6 (2011)
Issue (Month): 1 (January)
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Web page: http://econtheory.org
Regret; transitivity; non-expected utility;
Other versions of this item:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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