This function, derived from Regret Theory as proposed by Loomes and Sugden (1982) and Bell (1982) and axiomatized by Sugden (1993) and Quiggin (1994), defines regret as the disutility of not having chosen the ex post optimal alternative.
Our results predict that preferences that are consistent with the Regret Theory axioms of Sugden (1993) and Quiggin (1994) (i.
Regret theory is formulated theoretically by Bell (1982, 1983) and Loomes and Sugden (1982).
In alignment with regret theory, I assume that the evaluation of gains and losses in the second attribute in increasing and convex [g' > 0,g" > 0, and g(0) = 0]; that is, the individuals weigh the disutility incurred from envy relatively more than the additional utility derived from gloating.
In particular, two of these models are worth noting: the Symbolic-Interpretive Perspective (S-I), and Deci-sional Regret Theory.
Among the theories S-I encompasses is Decisional Regret Theory, whose basis recalls the existentialist axiom that life is a series of choices and making a choice produces anxiety.
explains the newest theories behind the study of group dynamics such as Symbolic-Interpretive Perspective, Group Dialectics, Decisional Regret Theory
, Social Comparison Theory and Bona Fide Group Perspective, and shows how each can be applied to play groups, cliques, street gangs and even juries.
represents the idea that people take into account emotional reactions to outcomes when making decisions.
Braun and Muermann examine optimal insurance purchase decisions of individuals whose behavior is consistent with Regret Theory.
Russell tries to explain this by examining two non-standard utility models of insurance demand: rank-dependent expected utility and regret theory.
In those papers I showed that choice based on similarity judgments implies behaviors described by Kahneman and Tversky's (1979) prospect theory for risky alternatives represented as prospects and behaviors implied by Loomes and Sugden's (1982) regret theory for alternatives represented in state matrices used to test predictions of that theory.
Similarity Judgments in Choice under Uncertainty: A Reinterpretation of Regret Theory.