Dynamic Regret Avoidance

• 成果类型: Article
• 署名作者: Fioretti, Michele; Vostroknutov, Alexander; Coricelli, Giorgio
• 署名单位: Institut d'Etudes Politiques Paris (Sciences Po); Maastricht University; University of Southern California
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20180260
• 发表日期: 2022
• 页码: 70-93
• 关键词: anticipated regret; aversion; MODEL; RISK; choices

摘要

In a stock market experiment, we examine how regret avoidance influences the decision to sell an asset while its price changes over time. Participants know beforehand whether they will observe the future prices after they sell the asset or not. Without future prices, participants are affected only by regret about previously observed high prices (past regret), but when future prices are available, they also avoid regret about expected after-sale high prices (future regret). Moreover, as the relative sizes of past and future regret change, participants dynamically switch between them. This demonstrates how multiple reference points dynamically influence sales.