Open AccessTransitive regret
Author(s) -
Bikhchandani Sushil,
Segal Uzi
Publication year - 2011
Publication title -
theoretical economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.404
H-Index - 32
eISSN - 1555-7561
pISSN - 1933-6837
DOI - 10.3982/te738
Subject(s) - regret , transitive relation , ask price , mathematical economics , ex ante , economics , preference , expected utility hypothesis , microeconomics , mathematics , statistics , combinatorics , keynesian economics , economy
Preferences may arise from regret, i.e., from comparisons with alternatives forgone by the decision maker. We ask whether regret‐based behavior is consistent with nonexpected utility theories of transitive choice and show that the answer is no. If choices are governed by ex ante regret and rejoicing, then nonexpected utility preferences must be intransitive.