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. We show that the answer is no. If choices are governed by ex ante regret and elation then non-expected utility preferences must be intransitive.
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Bibliographic InfoPaper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 711.
Length: 17 pages
Date of creation: 04 Sep 2009
Date of revision: 24 Oct 2009
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transitivity; regret; expected utility;
Other versions of this item:
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-11 (All new papers)
- NEP-CBE-2009-09-11 (Cognitive & Behavioural Economics)
- NEP-EVO-2009-09-11 (Evolutionary Economics)
- NEP-MIC-2009-09-11 (Microeconomics)
- NEP-UPT-2009-09-11 (Utility Models & Prospect Theory)
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