Transitive Regret

18 Pages Posted: 27 Jan 2010 Last revised: 10 Feb 2010

See all articles by Uzi Segal

Uzi Segal

Boston College - Department of Economics

Sushil Bikhchandani

University of California, Los Angeles - Anderson School of Management

Date Written: October 24, 2009

Abstract

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 non-expected utility theories of transitive choice. We show that the answer is no. If choices are governed by ex ante regret and elation then non-expected utility preferences must be intransitive.

Keywords: transitivity, regret, expected utility

Suggested Citation

Segal, Uzi and Bikhchandani, Sushil, Transitive Regret (October 24, 2009). Available at SSRN: https://ssrn.com/abstract=1542937 or http://dx.doi.org/10.2139/ssrn.1542937

Uzi Segal

Boston College - Department of Economics ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Sushil Bikhchandani (Contact Author)

University of California, Los Angeles - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095
United States
310-206-2686 (Phone)
310-825-1581 (Fax)

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