Regret aversion and opportunity dependence

Takashi Hayashi

Journal of Economic Theory, 2008, vol. 139, issue 1, 242-268

Abstract: This paper provides an axiomatic model of decision making under uncertainty in which the decision maker is driven by anticipated ex post regrets. Our model allows both regret aversion and likelihood judgement over states to coexist. Also, we characterize two special cases, minimax regret with multiple priors that generalizes Savage's minimax regret, and a smooth model of regret aversion.

Date: 2008
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Citations: View citations in EconPapers (78)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:139:y:2008:i:1:p:242-268

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