18 Pages Posted: 27 Jan 2010 Last revised: 10 Feb 2010
Date Written: October 24, 2009
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
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