A comparison of regret theory and salience theory for decisions under risk

• 成果类型: Article
• 署名作者: Herweg, Fabian; Mueller, Daniel
• 署名单位: University of Bayreuth; Leibniz Association; Ifo Institut; University of Bayreuth; University of Wurzburg
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2021.105226
• 发表日期: 2021
• 关键词: Choice under risk; regret theory; Salience theory

摘要

Two non-transitive theories to model decision making under risk are regret theory (Loomes and Sugden, 1982, 1987) and salience theory (Bordalo et al., 2012). While the psychological underpinning of these two approaches is different, the models share the assumption that within-state comparisons of outcomes across choice options are a key determinant of choice behavior. We investigate the overlap between these theories and show that original regret theory (Loomes and Sugden, 1982) is a special case of salience theory (Bordalo et al., 2012), which itself is a special case of generalized regret theory (Loomes and Sugden, 1987). ? 2021 Elsevier Inc. All rights reserved.