An economic definition of ‘Fear of Missing Out’ (FOMO)

Mohammed Kaddouhah

Finance Research Letters, 2024, vol. 63, issue C

Abstract: This research note proposes a decision theoretic definition of the popular phenomenon of Fear of Missing Out (FOMO). Our definition assumes that FOMO causes individuals to base their decision-making utility on their own anticipated regret and the decisions made by individuals in their social peer group. We use an example related to asset trading in order to illustrate how to analyse decision-making under FOMO preferences and to highlight differences with the concept of regret aversion.

Keywords: Anticipated regret; Fear of Missing Out; FOMO; Financial decision-making (search for similar items in EconPapers)
JEL-codes: D81 D91 G11 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:63:y:2024:i:c:s154461232400374x

DOI: 10.1016/j.frl.2024.105344

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