Regret theory: A new foundation

• 成果类型: Article
• 署名作者: Diecidue, Enrico; Somasundaram, Jeeva
• 署名单位: INSEAD Business School
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2017.08.006
• 发表日期: 2017
• 页码: 88-119
• 关键词: Regret theory; Trade-off consistency; expected utility; transitivity

摘要

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. (C) 2017 Elsevier Inc. All rights reserved.