Transitive regret

Sushil Bikhchandani, Uzi Segal

Research output: Contribution to journalArticlepeer-review

Abstract

Preferences may arise from regret, i.e., from comparisons with alternatives forgone by the decision maker. We ask whether regret-based behavior is consistent with nonexpected utility theories of transitive choice and show that the answer is no. If choices are governed by ex ante regret and rejoicing, then nonexpected utility preferences must be intransitive.

Original languageEnglish
Pages (from-to)95-108
Number of pages14
JournalTheoretical Economics
Volume6
Issue number1
DOIs
StatePublished - Jan 2011
Externally publishedYes

Keywords

  • Nonexpected utility
  • Regret
  • Transitivity

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