Regret theory: A new foundation

We present a new behavioral foundation for regret theory. The central axiom of this foundation — trade-off consistency — renders regret theory observable at the individual level and makes our foundation consistent with a recently introduced empirical and quantitative measurement method. Our behavior...

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Detalles Bibliográficos
Autores: Diecidue, Enrico, Somasundaram, Jeeva
Tipo de recurso: artículo
Fecha de publicación:2017
País:España
Institución:IE
Repositorio:Repositorio IE
OAI Identifier:oai:repositorio.ie.edu:20.500.14417/3923
Acceso en línea:https://doi.org/10.1016/j.jet.2017.08.006
https://hdl.handle.net/20.500.14417/3923
https://www.sciencedirect.com/science/article/pii/S0022053117300844
Access Level:acceso abierto
Palabra clave:Regret theory
Trade-off consistency
Expected utility
Transitivity
53 Ciencias Económicas::5307 Teoría económica
ODS 4 - Educación de calidad
Descripción
Sumario:We present a new behavioral foundation for regret theory. The central axiom of this foundation — trade-off consistency — renders regret theory observable at the individual level and makes our foundation consistent with a recently introduced empirical and quantitative measurement method. Our behavioral foundation allows deriving a continuous regret theory representation and separating utility from regret. The axioms in our behavioral foundation clarify that regret theory minimally deviates from expected utility by relaxing transitivity only.