IDEAS home Printed from
   My bibliography  Save this article

Testing New Theories of Choice under Uncertainty using the Common Consequence Effect


  • Chris Starmer


A generalised common consequence problem is used to contrast the predictions of expected utility theory and several new theories of choice under uncertainty. An experiment designed to test these predictions is reported. Systematic violations of expected utility theory are detected but although a consistent pattern emerges from the data, it offers little support for any of the new theories. The analysis is extended to test predictions which are unique to regret theory and significant regret effects are detected.

Suggested Citation

  • Chris Starmer, 1992. "Testing New Theories of Choice under Uncertainty using the Common Consequence Effect," Review of Economic Studies, Oxford University Press, vol. 59(4), pages 813-830.
  • Handle: RePEc:oup:restud:v:59:y:1992:i:4:p:813-830.

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. David E. Bell, 1982. "Regret in Decision Making under Uncertainty," Operations Research, INFORMS, vol. 30(5), pages 961-981, October.
    2. David E. Bell, 1985. "Disappointment in Decision Making Under Uncertainty," Operations Research, INFORMS, vol. 33(1), pages 1-27, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roger J. Jiao & Feng Zhou & Chih-Hsing Chu, 2017. "Decision theoretic modeling of affective and cognitive needs for product experience engineering: key issues and a conceptual framework," Journal of Intelligent Manufacturing, Springer, vol. 28(7), pages 1755-1767, October.
    2. Ronald Bosman & Frans Van Winden, 2010. "Global Risk, Investment and Emotions," Economica, London School of Economics and Political Science, vol. 77(307), pages 451-471, July.
    3. Pierpaolo Battigalli & Martin Dufwenberg, 2019. "Psychological Game Theory," Working Papers 646, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    4. Patricia H. Born & E. Tice Sirmans, 2019. "Regret in health insurance post‐purchase behavior," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 22(2), pages 207-219, July.
    5. Servaas van Bilsen & Roger J. A. Laeven & Theo E. Nijman, 2020. "Consumption and Portfolio Choice Under Loss Aversion and Endogenous Updating of the Reference Level," Management Science, INFORMS, vol. 66(9), pages 3927-3955, September.
    6. Ashok K. Mishra & Mike G. Tsionas, 2020. "A Minimax Regret Approach to Decision Making Under Uncertainty," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 698-718, September.
    7. Zhenzhen Ma & Jianjun Zhu & Shitao Zhang, 2021. "Probabilistic-based expressions in behavioral multi-attribute decision making considering pre-evaluation," Fuzzy Optimization and Decision Making, Springer, vol. 20(1), pages 145-173, March.
    8. van der Swaluw, Koen & Lambooij, Mattijs S & Mathijssen, Jolanda & Zeelenberg, Marcel & Polder, Johan & Prast, Henriette, 2018. "Emotional Responses to Behavioral Economic Incentives for Health Behavior Change," Discussion Paper 2018-008, Tilburg University, Center for Economic Research.
    9. Zheng, Jiakun, 2020. "Optimal insurance design under narrow framing," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 596-607.
    10. Christian Knoller, 2016. "MULTIPLE REFERENCE POINTS AND THE DEMAND FOR PRINCIPAL-PROTECTED LIFE ANNUITIES: An EXPERIMENTAL ANALYSIS," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 83(1), pages 163-179, January.
    11. Ronald Eastburn, 2018. "Realising Value from Absorptive Capacity," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-26, March.
    12. Matija Franklin & Tomas Folke & Kai Ruggeri, 2019. "Optimising nudges and boosts for financial decisions under uncertainty," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-13, December.
    13. Carlos Laciana & Elke Weber, 2008. "Correcting expected utility for comparisons between alternative outcomes: A unified parameterization of regret and disappointment," Journal of Risk and Uncertainty, Springer, vol. 36(1), pages 1-17, February.
    14. van Winden, Frans & Krawczyk, Michal & Hopfensitz, Astrid, 2011. "Investment, resolution of risk, and the role of affect," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 918-939.
    15. Elard, Ilaf, 2020. "Three-player sovereign debt negotiations," International Economics, Elsevier, vol. 164(C), pages 217-240.
    16. Alfred Müller & Marco Scarsini & Ilia Tsetlin & Robert L. Winkler, 2017. "Between First- and Second-Order Stochastic Dominance," Management Science, INFORMS, vol. 63(9), pages 2933-2947, September.
    17. Daniel A Newark, 2020. "Desire and pleasure in choice," Rationality and Society, , vol. 32(2), pages 168-196, May.
    18. Richard Engelbrecht-Wiggans & Elena Katok, 2009. "A Direct Test of Risk Aversion and Regret in First Price Sealed-Bid Auctions," Decision Analysis, INFORMS, vol. 6(2), pages 75-86, June.
    19. Roland T. Rust & J. Jeffrey Inman & Jianmin Jia & Anthony Zahorik, 1999. "What You Know About Customer-Perceived Quality: The Role of Customer Expectation Distributions," Marketing Science, INFORMS, vol. 18(1), pages 77-92.
    20. Roger J. Jiao & Feng Zhou & Chih-Hsing Chu, 0. "Decision theoretic modeling of affective and cognitive needs for product experience engineering: key issues and a conceptual framework," Journal of Intelligent Manufacturing, Springer, vol. 0, pages 1-13.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:restud:v:59:y:1992:i:4:p:813-830.. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) The email address of this maintainer does not seem to be valid anymore. Please ask Oxford University Press to update the entry or send us the correct email address or (Christopher F. Baum). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.