Transitive Regret

Sushil Bikhchandani and Uzi Segal ()

No 711, Boston College Working Papers in Economics from Boston College Department of Economics

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 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.

Keywords: transitivity; regret; expected utility (search for similar items in EconPapers)
JEL-codes: D03 D81 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-evo, nep-mic and nep-upt
Date: 2009-09-04, Revised 2009-10-24
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Persistent link: http://EconPapers.repec.org/RePEc:boc:bocoec:711

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