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Minimizing regret in dynamic decision problems

Author

Listed:
  • Joseph Y. Halpern

    (Cornell University)

  • Samantha Leung

    (Cornell University)

Abstract

The menu-dependent nature of regret minimization creates subtleties when it is applied to dynamic decision problems. It is not clear whether forgone opportunities should be included in the menu. We explain commonly observed behavioral patterns as minimizing regret when forgone opportunities are present. If forgone opportunities are included, we can characterize when a form of dynamic consistency is guaranteed.

Suggested Citation

  • Joseph Y. Halpern & Samantha Leung, 2016. "Minimizing regret in dynamic decision problems," Theory and Decision, Springer, vol. 81(1), pages 123-151, June.
    • Handle: RePEc:kap:theord:v:81:y:2016:i:1:d:10.1007_s11238-015-9526-8
    DOI: 10.1007/s11238-015-9526-8
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    References listed on IDEAS

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    Cited by:

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    2. Haokai Xie & Pu Zhao & Xudong Ji & Qun Lin & Lianguang Liu, 2019. "Expansion Planning Method of the Industrial Park Integrated Energy System Considering Regret Aversion," Energies, MDPI, vol. 12(21), pages 1-20, October.
    3. Gisèle Umbhauer, 2022. "Market Exit and Minimax Regret," Post-Print hal-04491262, HAL.

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